GBP/CAD finds support at 2.0050

FXStreet (Córdoba) - The GBP/CAD cross edged lower erased previous day’s gains as the pound maintains a weak tone ahead of the first review of the Q3 GDP figures. Additionally, the Canadian dollar traded higher on thin markets, helped by an advance in European stocks.

GBP/CAD fell to a daily low of 2.0051, approaching the weekly low scored at 2.0011 last Tuesday. However, the pair failed to decisively break below the 2.0050 zone and settled in a slim range. At time of writing, the pair is trading at 2.0059, still 0.19% below its opening price.

GBP/CAD technical view

“The 1 hour chart shows that the price has extended below a bearish 20 SMA, while the technical indicators head south below their mid-lines, increasing the risk of additional declines, while in the 4 hours chart, the latest recovery stalled around a strongly bearish 20 SMA, whilst the technical indicators have resumed their declines after correcting oversold readings, supporting the shorter term outlook”, said Valeria Bednarik, chief analyst at FXStreet.

Bednarik locates next support levels at 2.0010, 1.9955 and 1.9910, while she locates resistances at 2.0080, 2.0140 and 2.0180.