Forex Market: GBP/CAD daily forecast

During yesterday’s trading session GBP/CAD traded within the range of 1.8216-1.8304 and closed at 1.8256.

At 7:39 GMT today GBP/CAD was gaining 0.01% for the day to trade at 1.8252. The pair touched a daily high at 1.8260 at 00:30 GMT.

Fundamental view

The advance reading of the British GDP probably rose to 3.1% in the second quarter compared to a year ago, from a final reading of 3.0% in the first quarter.

The Gross Domestic Product is an integral part of the UK public account and measures the total economic activity of the country. GDP is still referred to as one of the main “common indicators” for economic activity and presents economic growth in the last quarter. This is the first calculation of the indicator based on production data and is published three-and-a-half weeks after the end of the quarter. This is a preliminary value of the indicator and is presented as a percentage change compared to the corresponding quarter a year earlier.

The Office for National Statistics is scheduled to release an official report at 08:30 GMT. In case, the British GDP grew at a faster-than-expected pace, sterling’s demand will be heightened.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.8336. In case GBP/CAD manages to breach the first resistance level at 1.8301, it will probably continue up to test 1.8347. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8389.

If GBP/CAD manages to breach the first key support at 1.8213, it will probably continue to slide and test 1.8171. With this second key support broken, the movement to the downside will probably continue to 1.8125.