GBPCAD Hits Multi-Year High Amid Slump In Oil Prices
The GBP/CAD cross reached a multi-year high of 2.0969, adding over 250 pips to its latest rally, and maintaining its gains by the end of the day, after a sharp intraday decline.
The slump in oil prices put the Canadian dollar under strong selling interest, as WTI crude oil futures fell down to $37.75 a barrel, levels not seen since 2009.
As for the GBP/CAD technical picture, the 1 hour chart shows that the bullish momentum prevails, with the technical indicators heading higher near overbought levels, and the 20 SMA attracting intraday buyers, currently around 2.0800.
In the 4 hours chart, the technical indicators are beginning to lose their upward strength near overbought levels, but the upside remains favored, as the 20 SMA heads sharply higher below the current price, while there’s no clear sign the pair may reverse its gains during the upcoming hours.