During yesterday’s trading session GBP/CAD traded within the range of 1.8398-1.8538 and closed at 1.8508.
At 6:55 GMT today GBP/CAD was gaining 0.14% for the day to trade at 1.8518. The pair touched a daily high at 1.8531 at 6:18 GMT.
Fundamental view
Manufacturing activity in the United Kingdom probably accelerated in April, with the corresponding PMI rising to 55.4, according to the median forecast by analysts. In March the index came in at a reading of 55.3. The index is based on a monthly study of activity in the manufacturing sector and forecast for its future development. The study is comparable to that of ISM in the U.S, as both studies are based on the opinions of executives at manufacturing companies. Managers are asked about future demand and orders for materials. The index summarizes their views and gives an overall picture of the future in the manufacturing sector. The indicator is represented by index values between 1 and 100, with levels above 50 signaling that the economic outlook is positive. Values below 50 indicate that the situation is deteriorating.
Higher than expected values would provide a boost for the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the results from its monthly survey at 8:30 GMT.
Technical view
According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8565, it will probably continue up to test 1.8621 In case the second key resistance is broken, the pair will probably attempt to advance to 1.8705.
If GBP/CAD manages to breach the first key support at 1.8425, it will probably continue to slide and test 1.8341. With this second key support broken, the movement to the downside will probably continue to 1.8285.