GBP/CAD hits 8-month lows

With the pound among the worst performers across the boards amid Brexit fears and the Canadian dollar tracking oil prices higher, the GBP/CAD cross plummeted, trading almost 500 pips down at one stage at an 8-month low of 1.9262 before recovering somewhat to end the day just below 1.9400. Crude prices soared on Monday with WTI futures posting a 6.2% gain to settle at $31.48 a barrel.

From a technical view, the 1-hour chart shows the RSI has bounced from oversold levels with the late recovery, while the Momentum indicator turned flat but both hold well below their-midlines, favouring a downward continuation. In the 4 hour chart, oversold conditions persist suggesting a phase of consolidation before the next directional move, which most likely will be to the downside.

Support levels: 1.9250 1.9220 1.9200. Resistance levels: 1.9470 1.9500 1.9550.