Forex Market: GBP/CAD daily outlook

During yesterday’s trading session GBP/CAD traded within the range of 1.8456-1.8562 and closed at 1.8474.

At 7:50 GMT today GBP/CAD was gaining 0.01% for the day to trade at 1.8469. The pair touched a daily high at 1.8481 at 6:35 GMT.

Fundamental view

The annualized index of consumer prices in the United Kingdom probably slowed down to 1.7% in February, according to the median estimate by experts, from a rate of 1.9% in January. In monthly terms, consumer prices probably rose 0.5% last month, following a 0.6% drop in January. In case consumer inflation accelerates more than anticipated, this would provide support to British pound.

The annualized core consumer price index (CPI), which excludes volatile components such as food, energy, alcohol and tobacco, probably was at 1.6% in February, the same as in January.

At the same time, the number of approved loans for house purchase in the country probably increased to 50 000 during January from 49 972 in the preceding month. The British Bankers Association will release the official figure at 9:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8539, it will probably continue up to test 1.8603. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8645.

If GBP/CAD manages to breach the first key support at 1.8433, it will probably continue to slide and test 1.8391. With this second key support broken, the movement to the downside will probably continue to 1.8327.