GBP/CAD May Break 2.0165 Support Amid Rising Oil Prices
The GBP/CAD plummeted to a fresh 5-week low as oil prices soared, erasing all of this August losses and reaching fresh highs for the month.
West Texas Intermediate crude oil prices advanced up to $ 49.31 a barrel before closing the day in the 48.60 region, helped by an EIA report, showing that producers have begun cutting back supply, as the US oil production in June fell to 9.3M barrels a day, down from 9.6M in April.
The cross fell down to 2.0186 intraday, and the 1 hour chart shows that the price has fallen sharply below a now bearish 20 SMA, whilst the technical indicators maintain their bearish slopes below their mid-lines, now approaching oversold levels.
In the 4 hours chart, an initial advance failed to hold above a strongly bearish 20 SMA, whilst the Momentum indicator has turned sharply lower around its mid-line, and the RSI indicator hovers around 32, all of which supports additional declines that will likely extend on a break below 2.0165 a strong static support level.
Support levels: 2.0165 2.0100 2.0035
Resistance levels: 2.0280 2.0350 2.0410