The GBP/CAD cross plummeted to 1.7147, stalling a couple of pips above the post-Brexit vote low, and remains nearby, with the pound in sell-off mode against all of its major rivals after BOE's Governor Carney hinted a summer rate cut this Thursday.
The Canadian dollar, on the other hand, saw a moderated intraday decline, weighed by retreating oil prices, but supported by a strong advance in worldwide stocks.
GBP/CAD technical view
“Nor the first, neither the last Pound sell-off on the table these days, the cross is poised to continue falling, short and long term, as sentiment towards the British currency will hardly improve now and investors will be pricing in an upcoming rate hike,” said Valeria Bednarik, chief analyst at FXStreet. “In the 1 hour chart, the price accelerated lower after breaking below a now bearish 20 SMA, whilst the technical indicators head south near oversold readings. In the 4 hours chart, the price also broke below its 20 SMA, whilst the technical indicators maintain their bearish slopes within negative territory.”
Support levels: 1.7140 1.7070 1.7010. Resistance levels: 1.7230 1.7290 1.7365.
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