GBP/CAD Remains Vulnerable As Bearish Gain Momentum
The GBP/CAD edged lower this Tuesday, as the Pound was among the weakest currencies of the day, following the release of tepid Britain’s CPI figures, suggesting a rate hike in the UK may be delayer further beyond the first half of 2016.
Crude oil prices were hardly changed, with WTI crude oil futures advancing some cents, but ending the day below $ 45.00 a barrel. The GBP/CAD presents a clear negative tone by the US close, with the 1 hour chart showing that the 20 SMA gained bearish slope around 2.0410, and that the technical indicators maintain their sharp negative slopes, despite being in oversold territory.
In the 4 hours chart, the technical indicators head sharply lower whilst the price is now extending below its 200 EMA, currently around 2.0330.
A downward acceleration through the 2.0300 level exposes the cross to a test of 2.0260 region, where it has several intraday highs and lows. Additional declines below this last should see a stronger bearish momentum, with the target then at the 2.0200 level.