GBP/CAD falls below 1.9000 amid renewed Brexit fears

The GBP/CAD cross saw some wild intraday moves, as data coming from both economies pushed it back and forth throughout the day.

The cross surged early US session to 1.9166, after the release of Canadian GDP figures, as real gross domestic product expanded 2.4% in the first quarter, below the 2.9% increase expected. In afternoon trade, the release of new Brexit referendum poll results, however, put the pound in a selling spiral, resulting in the cross sinking to 1.8966 a fresh 2-week low.

GBP/CAD technical perspective

“Now struggling to regain the 1.9000 mark, the 1 hour chart shows that 20 SMA has turned sharply lower well above the current level, whilst the technical indicators maintain their bearish slopes near oversold readings, in line with further declines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is below a horizontal 20 SMA, whilst the technical indicators stand below their mid-lines, with no certain directional strength. Renewed slides below 1.8970 are now required to confirm a new leg lower that can extend down to 1.8860 this Wednesday.”

Support levels: 1.8970 1.8920 1.8860. Resistance levels: 1.9050 1.9110 1.9165.