For the last three months the GBP currency has been struggling against the Canadian dollar and has declined from 1.7851 to record the lowest price in five months at 1.6236. This means it lost more than 1600 pips after the better-than-expected GDP value which was 0.2%, compared to the actual reading at 0.6%, so that the GBP/CAD pair declined further last week.
The pair is trading stably now above the key support area at 1.6268 inside the downside price channel which may lead the pair to levels even lower than the recent one. In addition, this week is overwhelming with hot news from the United Kingdom which may lead the pair to make some correction to the next resistance levels. The MACD columns indicator is still above the zero level but the prices are still above the moving average which supports the positive correction in the next hours.
The Next Few Days
After we saw the prices have been trading steadily above the support level for more than a week, we can buy the pair now at the current level 1.6355 and keep our target at 1.6535. That is in case the pair doesn’t break the support level. On the other hand, if the news came in negative for the GBP and made another low under 1.6236 we have to sell it and keep our target at 1.5985.
This week the market has much hot news from the UK like the PMI’s data on manufacturing, construction and services, and the official bank rate in addition to the inflation report.
