Pound-to-Canadian Dollar Week Ahead Forecast: Drift Lower
- Written by: Gary Howes
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The Pound to Canadian dollar exchange rate opens the week at 1.8572 after rebounding modestly from last week’s 1.85 floor.
The bounce reflects a rebalancing from near-oversold conditions in the short-term: note that this highly rangebound pair can look oversold on movements that wouldn't raise an eyebrow on other currency pairs.
Indeed, the sweeping overview is that this pair remains comfortably lodged within its long-term 1.87–1.8350 sideways range.
For the coming week, the near-term setup leans slightly bearish as GBP/CAD remains below the nine-day and 21-day exponential moving averages at 1.8578 and 1.8598, respectively.
A retest of 1.85 looks plausible, but the subdued nature of this pair will limit downside.
Week Ahead Forecast (Highest Probability)
Base case: drift toward 1.85
- Resistance near 1.8580–1.8600
- Broader structure remains range-bound
- Break below 1.85 opens 1.8350
Strategic Overlay for GBP/CAD Payments
Those needing to buy CAD (sell GBP) should consider acting while GBP/CAD remains above 1.85, as technical momentum favours renewed downside. Those needing to sell CAD (buy GBP) can afford patience within the established range but should be prepared to act if 1.85 gives way, as that would likely accelerate CAD strength.
Get in touch with our partners at Horizon Currency to discuss your needs.
