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GBP/CAD Technical Outlook: 7 Oct 2015


The GBP/CAD cross advanced this Tuesday, up to 1.9918, but gave up most of its intraday gains and closed a few pips above its daily opening amid CAD’s strength, which approached to the 1.30 level against the greenback, for the first time in three weeks.

Crude oil prices surged, with WTI up to levels not seen since August amid an EIA report regarding US production, as the organism estimates that US oil production fell by 120,000 barrels per day in September.

As for the technical picture of the cross, the 1 hour chart shows that the price is down to its 20 SMA, whilst the technical indicators have turned south, but are still holding above their mid-lines as per Fibonacci trading analysis.

In the 4 hours chart, the cross held below a bearish 20 SMA, whilst the RSI indicator turned lower after a limited upward corrective movement near oversold levels, and the Momentum indicator consolidates in negative territory, all of which maintains the risk towards the downside.

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