27 Apr 2016
GBP/CAD edges lower, approaches 1.8300
The GBP/CAD cross edged slightly lower this Wednesday, as the Canadian dollar grabbed strength from oil rallying to fresh 2016 highs.
The black gold got a boost from the EIA report, which despite showing a build in US stockpiles of 2M, also reported that US output slipped to the least since October 2014, down to 8.94 million barrels a day.
A weaker Pound, helped to keep the cross in the negative side, albeit the intraday trading range was quite limited. Nevertheless, GBP/CAD posted a lower low and a lower high daily basis, maintaining the overall risk towards the downside.
GBP/CAD technical view
“Shorter term, the 1 hour chart shows that the price remains below a mild bearish 20 SMA whilst the Momentum indicator heads south below its 100 level, supporting some additional declines on a downward acceleration below 1.8320, the immediate support,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the ongoing candle opened and develops below the 20 SMA, whilst the technical indicators maintain their bearish slopes after crossing below their mid-lines, also indicating the risk is now towards the downside.”
Support levels: 1.8320 1.8270 1.8220. Resistance levels: 1.8360 1.8410 1.8465.
The black gold got a boost from the EIA report, which despite showing a build in US stockpiles of 2M, also reported that US output slipped to the least since October 2014, down to 8.94 million barrels a day.
A weaker Pound, helped to keep the cross in the negative side, albeit the intraday trading range was quite limited. Nevertheless, GBP/CAD posted a lower low and a lower high daily basis, maintaining the overall risk towards the downside.
GBP/CAD technical view
“Shorter term, the 1 hour chart shows that the price remains below a mild bearish 20 SMA whilst the Momentum indicator heads south below its 100 level, supporting some additional declines on a downward acceleration below 1.8320, the immediate support,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the ongoing candle opened and develops below the 20 SMA, whilst the technical indicators maintain their bearish slopes after crossing below their mid-lines, also indicating the risk is now towards the downside.”
Support levels: 1.8320 1.8270 1.8220. Resistance levels: 1.8360 1.8410 1.8465.