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During yesterday’s trading session GBP/CAD traded within the range of 1.8370-1.8408 and closed at 1.8396, adding 0.09% for the day.

At 7:15 GMT today GBP/CAD was gaining 0.04% for the day to trade at 1.8400. The pair touched a daily high at 1.8418 at 6:25 GMT, breaching the first key daily resistance.

Fundamental view

Activity in United Kingdom’s sector of services was probably slightly higher in July, with the corresponding PMI coming in at 58.0, up from 57.7 in June. The index is based on a survey, encompassing managers of companies, that operate in sectors such as transportation, communications, IT, financial intermediation, tourism. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 8:30 GMT.

Technical view

Screenshot from 2014-08-05 10:19:57

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.8391. In case GBP/CAD manages to breach the first resistance level at 1.8413, it will probably continue up to test 1.8429. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8451.

If GBP/CAD manages to breach the first key support at 1.8375, it will probably continue to slide and test 1.8353. With this second key support broken, the movement to the downside will probably continue to 1.8337.

In weekly terms, the central pivot point is at 1.8380. The three key resistance levels are as follows: R1 – 1.8442, R2 – 1.8522, R3 – 1.8584. The three key support levels are: S1 – 1.8300, S2 – 1.8238, S3 – 1.8158.

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