GBPCAD: Lower Low Turns The Bias Bearish
The GBP/CAD edged higher by the end of the day, recovering ground in the American afternoon as oil’s price retreated from its recent highs.
Nevertheless, the GBP/CAD reached a lower low of 2.0089, which maintains the dominant bearish trend in place.
In shorter term, the 1 hour chart shows that the price is currently hovering around a horizontal 20 SMA, whilst the technical indicators have recovered some, but are now flat around their mid-lines, limiting chances of further advances.
In the 4 hours chart the price is well below a strongly bearish 20 SMA, whilst the technical indicators also lack directional strength, but in this case below their mid-lines, which increases chances of another leg lower, particularly if the Pound continues weakening.