Forex Market: GBP/CAD daily forecast

During yesterday’s trading session GBP/CAD traded within the range of 1.8194-1.8308 and closed at 1.8304.

At 7:02 GMT today GBP/CAD was gaining 0.1% for the day to trade at 1.8318. The pair touched a daily high at 1.8320 at 6:53 GMT.

Fundamental view

Annualized industrial output in the United Kingdom probably expanded 3.2% in May, following another 3% increase during the preceding month. In monthly terms, industrial production probably increased 0.3% in May, after adding 0.4% in the previous month. The index presents the change in the total inflation-adjusted value of production in sectors such as manufacturing, mining and energetics.

UK’s annualized manufacturing production, a short-term indicator which accounts for almost 80% of nation’s industrial output, probably expanded 5.6% in May. In April manufacturing output rose at an annualized pace of 4.4%. In monthly terms, production probably increased 0.4% during last month. As it is a key component of country’s Gross Domestic Product, in case manufacturing production expanded more than projected, this would have a bullish effect on the sterling.

The Office for National Statistics (ONS) will release the official figures 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 1.8343, it will probably continue up to test 1.8383. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8457.

If GBP/CAD manages to breach the first key support at 1.8229, it will probably continue to slide and test 1.8155. With this second key support broken, the movement to the downside will probably continue to 1.8115.