GBP/CAD Finally Breaks 2.0000 Resistance

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The GBP/CAD cross recovered above the 2.000 level in the American afternoon, favored by a strong rally in the Pound and a weaker CAD, weighed by a decline in oil prices after the release of the US EIA report.

According to official data, US oil stockpiles increased by 3.1 million barrels in crude supplies for the week ended October 2, leading to  a $2 decline in WTI crude after trading as high as $49.69 a barrel earlier in the day.

As for the technical picture, the 1 hour chart shows that the price has accelerated well above its 20 SMA, whilst the technical indicators maintain their strong upward slopes near overbought levels.

In the 4 hours chart, the cross is also above its 20 SMA, for the first time this month, whilst the technical indicators head higher almost vertically in positive territory, supporting a continued advance for this Thursday.

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