Forex Market: GBP/CAD daily forecast

During yesterday’s trading session GBP/CAD traded within the range of 1.8360-1.8414 and closed at 1.8398.

At 7:19 GMT today GBP/CAD was losing 0.09% for the day to trade at 1.8385. The pair touched a daily low at 1.8369 at 3:55 GMT, breaching the first key support.

Fundamental view

The Consumer Price Index (CPI) in Canada probably jumped 2.4% in June, compared to the same period a year ago, according to the median analysts’ estimate. In May, consumer prices rose 2.3%, the most since February 2012.

At the same time, the core CPI probably advanced by 1.7% in the previous month from a year ago, after a 1.7% gain in May, according to the median forecast by experts.

The Core Consumer Price Index differs from the basic CPI measure as it doesn’t take into account the indirect taxes and eight most volatile components identified by the Bank of Canada- fruit, fruit and nuts; mortgage costs, natural gas and other fuels, oils and other lubricants, public transport, tobacco products and supplies. This is the percentage change compared to the same month a year earlier.

Statistics Canada will publish its monthly report at 12:30 GMT today. Higher-than-expected readings will certainly heighten the loonie’s appeal.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8421, it will probably continue up to test 1.8445. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8475.

If GBP/CAD manages to breach the first key support at 1.8370, it will probably continue to slide and test 1.8337. With this second key support broken, the movement to the downside will probably continue to 1.8313.