Forex Market: GBP/CAD daily outlook

During yesterday’s trading session GBP/CAD traded within the range of 1.8316-1.8382 and closed at 1.8342.

At 6:44 GMT today GBP/CAD was gaining 0.05% for the day to trade at 1.8354. The pair touched a daily high at 1.8373 at 2:45 GMT.

Fundamental view

Activity in United Kingdoms sector of services probably was almost unchanged in March, with the corresponding PMI coming in at 58.1, down from 58.2 in February. The index is based on a survey, encompassing managers of companies, that operate in sectors such as transportation, communications, IT, financial intermediation, tourism. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 9:30 GMT.

Also at 9:30 GMT Bank of England (BoE) will publish its report on lending conditions in the United Kingdom during the three months through March. It is based on a survey of banking and non-banking institutions, which provide information regarding secured and not secured loans to households, small and medium enterprises and corporations outside financial sector. Respondents in the survey are asked about their opinion on conditions during both past three and the upcoming three months.

Meanwhile, Canadas trade balance probably produced a surplus at the amount of 0.200 billion CAD during February, according to the median estimate by experts. In January nations trade deficit was 0.177 billion CAD. Higher than projected surplus would be supportive for the loonie, as Canadian dollar is also known. Statistics Canada will release the official figure at 13:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8377, it will probably continue up to test 1.8413. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8443.

If GBP/CAD manages to breach the first key support at 1.8311, it will probably continue to slide and test 1.8281. With this second key support broken, the movement to the downside will probably continue to 1.8245.