Forex Market: GBP/CAD daily forecast

During yesterday’s trading session GBP/CAD traded within the range of 1.8176-1.8275 and closed at 1.8232.

At 7:29 GMT today GBP/CAD was losing 0.03% for the day to trade at 1.8215. The pair touched a daily low at 1.8207 at 7:24 GMT.

Fundamental view

United Kingdom

Annualized industrial output in the United Kingdom probably expanded 2.2% in February, following another 2.9% increase during the preceding month. In monthly terms, industrial production probably increased 0.3% in February. The index presents the change in the total inflation-adjusted value of production in sectors such as manufacturing, mining and energetics.

UKs annualized manufacturing production, a short-term indicator which accounts for almost 80% of nations industrial output, probably expanded 3.1% in February. In January manufacturing output rose at an annualized pace of 3.3%. In monthly terms, production probably increased 0.2% during February. As it is a key component of countrys Gross Domestic Product, in case manufacturing production expanded more than projected in February, this would have a bullish effect on the sterling. The Office for National Statistics (ONS) will release the official figures at 8:30 GMT.

Canada

Annualized number of housing starts in Canada probably decreased to 192 000 in March from 192 094 in February. Housing starts are considered as a key indicator, reflecting nations housing sector resilience. In case the number of housing starts increased more than expected, this would provide support to the loonie. Canadas Mortgage and Housing Corporation will release the official numbers at 12:15 GMT.

The number of building permits in the country probably declined 2.0% in February compared to a month ago, according to the median estimate by experts. In January permits issued by the government were 8.5% more. Building permits, as an indicator, provide information regarding demand in Canadas housing market. A higher than anticipated number would be supportive for the Canadian dollar. Statistics Canada is to release its monthly report at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8279, it will probably continue up to test 1.8327. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8378.

If GBP/CAD manages to breach the first key support at 1.8180, it will probably continue to slide and test 1.8129. With this second key support broken, the movement to the downside will probably continue to 1.8081.