Forex Market: GBP/CAD daily trading forecast

Yesterday’s trade saw GBP/CAD within the range of 1.7836-1.8068. The pair closed at 1.8068, gaining 1.19% on a daily basis.

At 7:27 GMT today GBP/CAD was down 0.22% for the day to trade at 1.8023. The pair touched a daily low at 1.8017 at 7:00 GMT.

Fundamental view

United Kingdom

The number of home loans in the United Kingdom, issued by the British Bankers’ Association (BBA), probably increased to 42 900 in August from 42 792 in July. The BBA features the major banks in the country, which account for almost 60% of overall mortgage lending. The number of mortgage loans is considered as a leading indicator in regard to UK housing market conditions. As growth in mortgage lending signifies a healthy housing sector, which also contributes to overall economic activity, in case the number of loans rose more than projected, this would boost demand for the sterling. The BBA is to publish the official figure at 8:30 GMT.

Canada

Retail sales in Canada probably increased 0.5% in July on a monthly basis, according to the median forecast by experts. If so, this would be the slowest rate of increase since March. In June sales rose 1.0%. Retail sales, excluding sales of automobiles, probably remained flat in July, following a 1.5% gain in the preceding month. Large-ticket purchases are excluded due to their high volatility, which could influence the general trend. In case retail sales increased more than anticipated, this would support the Canadian dollar. Statistics Canada is to release the official figure at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.7991. In case GBP/CAD manages to breach the first resistance level at 1.8145, it will probably continue up to test 1.8223. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8377.

If GBP/CAD manages to breach the first key support at 1.7913, it will probably continue to slide and test 1.7759. With this second key support broken, the movement to the downside will probably continue to 1.7681.

The mid-Pivot levels for today are as follows: M1 – 1.7720, M2 – 1.7836, M3 – 1.7952, M4 – 1.8068, M5 – 1.8184, M6 – 1.8300.

In weekly terms, the central pivot point is at 1.7927. The three key resistance levels are as follows: R1 – 1.8047, R2 – 1.8238, R3 – 1.8358. The three key support levels are: S1 – 1.7736, S2 – 1.7616, S3 – 1.7425.