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GBP/CAD Still Looks Very Bearish Amid Soaring Oil Prices - Capital Street FX
GBP/CAD Still Looks Very Bearish Amid Soaring Oil Prices
The GBP/CAD aimed to recover some ground on Friday, but ended up in the red for the fourth straight day, closing the week at 2.0293, a couple of pips above Thursday’s low of 2.0281.
With Pound maintaining its weak tone, and the Canadian dollar finding support in soaring oil prices, the cross is set to continue declining.
US WTI crude gained near 12% by the ends of last week on speculation the OPEC will have no other choice but to cut production, should the commodity’s price remains subdued.
As for the technical picture of the GBP/CAD, the daily chart shows that the intraday recovery stalled around a bearish 20 SMA around 2.0460, whilst the technical indicators are now hovering around their mid-lines, with the RSI anticipating additional declines around 45.
In the 4 hours chart, the 20 SMA maintains a strong bearish slope well above the current price, whilst the Momentum indicator has corrected oversold readings, but lost steam well below its 100 level, and the RSI indicator heads south around 31, supporting a bearish continuation on a break below 2.0280 the immediate support.