Pound-to-Canadian-Dollar Rate 5-Day Forecast: New Lows in Sight After Key Level Gives Way

The GBP/CAD rate broke lower following strong retail sales and inflation data at the end of last week, with bears finally managing to pierce below the stubborn 200-day moving average, and the pair looks vulnerable to further losses in the short term.

Data out of Canada ahead of the weekend has allowed the Canadian Dollar to top the foreign exchange leaderboard.

The Canadian Dollar rose against many of its rivals Monday although respite from recent losses is likely to prove short-lived, according to multiple analysts, who are advocating that clients continue to sell the currency against the US Dollar.

GBP/CAD is still trading in a range above the 200-day MA but is within a broader downtrend and looks vulnerable to further weakness. Brexit machinations will continue to dominate Sterling and inflation data is the main release for CAD

The Canadian Dollar rose Thursday, extending gains notched up on Wednesday in the wake of the Bank of Canada's (BoC) latest interest rate rise, although the BoC's latest statement has done little to clear the air of uncertainty and confusion hanging over the currency. 

The Canadian Dollar rose sharply against its developed world counterparts Wednesday after the Bank of Canada (BoC) raised its interest rate for the fourth time in the last 12 months and signalled its intention to continue withdrawing stimulus from the Canadian economy over the coming quarters. 

The Canadian Dollar rose against a majority of its developed world rivals Tuesday but analysts are increasingly of the view that gains for the currency will be short-lived, as Wednesday's Bank of Canada (BoC) meeting is likely to produce a classic "buy the rumour and sell the fact" reaction from the market.

GBP/CAD at risk of a breakdown due to central bank action, price charts are meanwhile also signalling a bearish bias as Elliot wave pattern points to 1.70s Read more ...