GBPCAD On Watch
Price action in GBPCAD is looking interesting here. The pair has been moving lower in a tight bearish channel over recent months. However, the most recent lows saw strong bullish divergence with price subsequently breaking out above the bear channel highs. In light of these movements, we are now potentially dealing with a basing pattern in GBPCAD, suggesting room for a breakout higher. Bulls can look for a breach of the 1.6109 level targeting 1.6293 and 1.6551 thereafter.
GBP has turned more bullish in recent sessions as BOE rate-hike expectations have kicked back into gear following last week’s CPI print. With UK inflation at 40-year highs, the market now projects further action from the BOE, which was all but confirmed by governor Bailey earlier this week.
Keep An Eye On
GBP seems to have benefitted more from the recent correction in USD and CAD is suffering more from current USD buying. While this dynamic remains in place, GBPCAD looks likely to have further upside in store. This will be particularly true if oil prices start to weaken on any fresh buying in USD which would weigh heavily on CAD near-term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.