GBP/CAD ends below 1.7000 for the first time since November 2013

 The GBP/CAD pair broke below the 1.7000 handle and dropped to 1.6830 reaching a new 32-month low. It moved off lows during the last hours but it was unable to regain levels on top of 1.7000.

The decline reflects the weakness of the pound that again came under pressure across the board. GBP/CAD finished lower despite the fact that the Loonie also fell in the currency market, affected by the decline of more than 4% in crude oil prices.

UK economic and political uncertainty continues to affect the Pound. Since the referendum results GBP/CAD lost more than 2000 pips. Despite oversold readings in technical indicators, the downside trend remains strong and no signals of a bottom or a reversal are seen.

GBP/CAD technical levels

On a wider perspective, below 1.70 the next medium-term support could be seen at the 1.64 handle. Short term support: 1.6900 1.6815 1.6650. Resistance: 1.7035 1.7160 1.7225.