Forex Market: GBP/CAD daily forecast

During yesterday’s trading session GBP/CAD traded within the range of 1.8360-1.8530 and closed at 1.8502.

At 08:04 GMT today GBP/CAD was gaining 0.11% for the day to trade at 1.8518. The pair touched a daily high at 1.8537 at 04:45 GMT.

Fundamental view

The Consumer Price Index (CPI) in Canada probably rose 1.4% in March, compared to the same period a year ago, according to the median analysts estimate. In February, consumer prices jumped 1.1%.The CPI is an indicator that takes into account changes in consumer prices of goods and services consumed by Canadians. Obtained by comparing the prices of a basket of goods consumed by households for different periods of time. The index reflects only the net price changes, as it contains only items with the same quality and quantity compared to previous periods. The index is used as an indicator of change in core consumer prices and hence inflation. Changes in prices of goods and services are presented, according to their relative importance to the costs incurred by consumers for their acquisition. Consumer basket items are updated every four years and are derived from a household survey on savings and food costs. This is the percentage change in the index over the corresponding month a year earlier.

The Core CPI probably advanced by 1.3% in the previous month from a year ago, according to the median forecast by experts. The Core Consumer Price Index differs from the basic CPI measure as it doesnt take into account the indirect taxes and eight most volatile components identified by the Bank of Canada- fruit, fruit and nuts; mortgage costs, natural gas and other fuels, oils and other lubricants, public transport, tobacco products and supplies. This is the percentage change compared to the same month a year earlier.

Statistics Canada will publish its monthly report at 12:30 GMT today. Higher-than-expected readings will certainly heighten the loonies appeal.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8568, it will probably continue up to test 1.8634. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8738.

If GBP/CAD manages to breach the first key support at 1.8397, it will probably continue to slide and test 1.8294. With this second key support broken, the movement to the downside will probably continue to 1.8228.