Forex Market: GBP/CAD daily forecast

During yesterday’s trading session GBP/CAD traded within the range of 1.8139-1.8260 and closed at 1.8173.

At 7:52 GMT today GBP/CAD was losing 0.21% for the day to trade at 1.8138. The pair touched a daily low at 1.8129 at 7:18 GMT, the pairs weakest since February 12.

Fundamental view

Canadas Current Account deficit probably narrowed to 13 billion CAD in the first quarter from 16 billion CAD deficit in the last quarter of 2013.

The indicator monitors transactions between Canadian and foreign nationals, allocated respectively between the current account, the capital account and financial account. Transactions represent changes in the total value of transfers between Canadian and foreign market units, from Canadian perspective. They can be in the form of goods, services, investment income and other financial sources. Transactions are recorded using a dual accounting system that automatically takes into account all of them. The double effect is in the determination of the sender and the recipient of each transfer. The minus sign is used to import transactions or outflow of capital abroad, which increased assets abroad. With plus sign is marked exports or capital investments, which are carried out by foreign economic units.

Statistics Canada will release an official report at 12:30 GMT. In case, the nations deficit narrowed more than expected, this would boost loonies demand.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CAD manages to breach the first resistance level at 1.8242, it will probably continue up to test 1.8312. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8363.

If GBP/CAD manages to breach the first key support at 1.8121, it will probably continue to slide and test 1.8070. With this second key support broken, the movement to the downside will probably continue to 1.8000.