GBP/CAD Holds onto Gains Near 1.8500
The Canadian dollar plummeted against all of its major rivals Tuesday on
the back of oil's weakness, leading to an advance to 1.8510 in the GBP/CAD cross.
Crude oil futures in the US fell down to $43.35 a barrel on the New York Mercantile Exchange, while Brent fell 76 cents, or 1.6%, to $45.07 a barrel on news that Chinese demand stagnated in April.
However, the Pound was also among the worst daily performers, hit by news showing that the manufacturing sector contracted last April, preventing the cross from advancing further. At time of writing, GBP/CAD is trading at 1.8490, recording a 0.58% gain on Tuesday.
GBP/CAD technical perspective
“From a technical point of view, intraday charts suggest that the advance may extend, as in the 4 hours chart, the Momentum indicator has resumed its advance after a limited downward correction, whilst the RSI indicator consolidated around 68. Additionally, the 20 SMA has gained a stronger bullish slope and now heads north around 1.8370,” said Valeria Bednarik, chief analyst at FXStreet. “The 1.8500/10 region is a tough bone to break, as the price has been rejected from it ever since early April, yet if the level gives up, the rally can extend up to the 1.8700/40 price zone during the upcoming sessions.”
Support levels: 1.8445 1.8390 1.8350. Resistance levels: 1.8510 1.8565 1.8620.