GBP/CAD falls to 2 ½-year lows

Pound's weakness continued leading the GBP/CAD cross that extended its decline down to 1.7141, level last seen in November 2013.

The cross bounced partially during the US afternoon, settling around 1.7260 by the end of the day, as the Canadian dollar accelerated losses on falling oil prices. Both major benchmarks, WTI and Brent, accumulate losses of over 7% since last Thursday, with US light, sweet crude trading as low as $45.82 a barrel this Monday.

GBP/CAD technical perspective

“The 4 hours chart for the cross shows an unfilled gap at 1.7720, but also that the technical indicators maintain their bearish tone within extreme oversold readings, whilst the price develops far below a sharply bearish 20 SMA, maintaining the risk towards the downside,” said Valeria Bednarik, chief analyst at FXStreet.

Support levels: 1.7210 1.7140 1.7085. Resistance levels: 1.7320 1.7370 1.7825.