- The pound is under pressure on Monday, it maintains daily losses.
- The loonie retreats during the US session against other commodity currencies amid improved risk sentiment.
The pair GBP/CAD it bottomed out Monday at 1.7046 and rallied to 1.7165. At time of writing, it is trading at 1.7135, nearly 150 pips below Friday’s close. The key factor has been the fall of the pound across the board affected by the new strain of COVID-19 in the UK and the lack of agreement between the European Union and the UK regarding their future business relationship after 31 from December.
The pound plummeted as more countries canceled flights to the UK due to reports of a highly contagious strain of coronavirus in the UK. Additionally, the government announced further restrictions and affected market sentiment globally. Markets received relief after US lawmakers agreed to a new stimulus package.
The Dow Jones is down 0.35% after falling nearly 3% on Monday. The improvement in risk sentiment helped the pound which cut losses across the board but is still heading for major losses and remains under pressure.
From a technical perspective, GBP / CAD now has a bearish bias on the 4-hour chart with the price below the 20 SMA. A recovery above 1.7200 would ease the negative pressure. The next resistance is at 1.7290 / 1.7300. On the other hand, immediate support is at 1.7100 followed by the daily low at 1.7040.
A close around the current level in GBP / CAD would confirm the drop below the 20, 55 and 100 day moving average. In a broader perspective, as long as it is above 1.6750 / 1.6800, the bias will remain sideways.
Technical levels
OVERVIEW
Today’s last price 1.7141
Today’s Daily Change -0.0108
Today’s Daily Change% -0.63
Opening today 1.7249
TRENDS
Daily SMA20 1.7216
Daily SMA50 1.7202
Daily SMA100 1.7221
Daily SMA200 1.7193
LEVELS
Previous Daily High 1.7295
Previous Daily Low 1.7193
Previous Weekly High 1.7339
Previous Weekly Low 1.6947
Previous Monthly High 1.7498
Previous Month Low 1.6984
Daily Fibonacci 38.2% 1.7232
Daily Fibonacci 61.8% 1.7256
Daily Pivot Point S1 1.7196
Daily Pivot Point S2 1.7144
S3 Daily Pivot Point 1.7095
R1 daily pivot point 1.7298
Daily pivot point R2 1.7347
R3 Daily Pivot Point 1.74
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