GBP/CAD Seeks Direction As Oil Strength Weighs
The GBP/CAD cross reversed its Friday’s losses and closed barely up at 2.0534, as the Canadian dollar was weighed by a slump in oil prices.
The black gold started the week with a strong note, with WTI advanced up to $ 47.69 a barrel, although the FED’s decision to maintain its economic policy unchanged raised concerns about the local economy, and therefore the energy demand.
News that US oil rig count fell the previous, with the Baker Hughes report showing 644 active rigs against previous 652, did little to help the black gold, particularly considering that oil production is still high.
The GBP/CAD however, closed at a 3-week high, and a slightly bullish tone prevails, as the daily chart shows the price bounced from a bearish 20 SMA providing a strong support around 2.0335, whilst the technical indicators lack directional strength above their mid-lines.
In the 4 hours chart, the price is well above a flat 20 SMA, whilst the RSI indicator heads higher around 58 and the Momentum indicator holds directionless above its 100 level.