Forex Market: GBP/CAD daily trading forecast

Yesterday’s trade saw GBP/CAD within the range of 1.7845-1.7952. The pair closed at 1.7900, unchanged on a daily basis.

At 9:55 GMT today GBP/CAD was up 0.03% for the day to trade at 1.7906. The pair touched a daily high at 1.7937 at 8:30 GMT.

Fundamentals

Canada

Canadian Gross Domestic Product (GDP) probably remained flat in August compared to July, according to market expectations, following another flat performance in July compared to June and a 0.3% growth in June compared to May. Canadas economy grew at an annualized pace of 2.5% in July. The GDP represents the total monetary value of all goods and services produced by one nation over a specific period of time. What is more, it is the broadest indicator of a countrys economic activity.

Currency traders will usually look for higher rates of growth as a sign that interest rates will follow the same direction. Higher interest rates will attract more investors, willing to purchase assets in the country, while, at the same time, this will increase demand for the national currency. If an economy is experiencing a robust rate of growth, the benefits will eventually affect the end consumer, because of the increased likelihood of spending, while through increased consumer expenditures economy has the potential to expand even further. Therefore, in case Canadas growth outpaced expectations, this would support the Canadian dollar. Statistics Canada is expected to release the official figure at 12:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.7899. In case GBP/CAD manages to breach the first resistance level at 1.7953, it will probably continue up to test 1.8006. In case the second key resistance is broken, the pair will probably attempt to advance to 1.8060.

If GBP/CAD manages to breach the first key support at 1.7846, it will probably continue to slide and test 1.7792. With this second key support broken, the movement to the downside will probably continue to 1.7739.

The mid-Pivot levels for today are as follows: M1 – 1.7766, M2 – 1.7819, M3 – 1.7873, M4 – 1.7926, M5 – 1.7980, M6 – 1.8033.

In weekly terms, the central pivot point is at 1.8089. The three key resistance levels are as follows: R1 – 1.8247, R2 – 1.8422, R3 – 1.8580. The three key support levels are: S1 – 1.7914, S2 – 1.7756, S3 – 1.7581.