Did you miss the GBP/CAD bullish breakout opportunity?
It is best to keep your eyes on this area of interest in case a retest occurs and the trend resumes.
Take a look at these turning points that I am watching on the 4-hour time frame:
GBP/CAD currency pair on 4-hour chart Chart by TradingView
The dovish rhetoric from the Bank of Canada (BOC) highlighting the possibility of further rate cuts is what is driving the Canadian currency lower these days.
On the other hand, expectations that the Bank of England may keep monetary policy unchanged for the time being are supporting the pound.
What will happen in the future? Canadian Consumer Price Index Report and UK Inflation Data What does this pair mean?
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on the GBP/CAD, it’s time to check out the economic calendar and stay up to date with the daily fundamental news!
The GBP/CAD pair recently broke the strong ceiling at 1.7825 and rose to a high of 1.7965 before pausing its advance.
A correction from this rise could push the pair to the former resistance area around the 50% Fibonacci level or the dynamic support of the 100 simple moving average near the 61.8% level and the pivot point (1.7800).
Additional volatility is expected as the release takes place. UK CPI figuresas the results are likely to influence expectations for the Bank of England’s decision later in the week.
Be prepared for a shallow drop to support at R1 (1.7900) which corresponds to a key psychological marker or a break above the latest highs at R2 (1.7970) if the GBP bulls are too keen to attack!
Don’t forget to practice proper risk management and stay aware of top-tier market triggers when trading this product.