Non Farm Payrolls Non Farm Payrolls GBP/CAD

 We look to the weekly chart form inspiration on the Pound to Canadian Dollar Pair, which has just broken above a key long-term trendline in a bullish move higher.

 The Canadian Dollar is expected to weaken versus all its major trading partners over the next two years, according to analysts’ predictions at Investment Bank CIBC Capital markets.

The GBP/CAD pair continues to move sideways under a trendline in the 1.65s forming a bull flag pattern in the process which is likely to breakout higher and rise roughly the same distance as the length of the ‘pole’.

 The pair has been pushing up against the trendline in the 1.65s and although it has been repulsed following successive attempts to break above, we still see a slight bias towards more upside and therefore an eventual break higher emerging.

GBP/CAD continues to move up and down in a sideways range after an initial bullish rally from off of the mid-January lows.

 A broad-based bullish reversal appears to be taking place on the GBP/CAD pair.

With much uncertainty plaguing the Pound and the Canadian Dollar potentially supported by what is expected to be strong employment and trade data in the coming week, the pair is marginally exposed to downside risks even though the technical indications are still slightly bullish.

The GBP/CAD exchange rate is showing a bullish flag shaped pattern which forecasts substantially higher rates, and a target in the vicinity of 1.71.

The outlook for both the Canadian Dollar and the Pound are mixed due to a high degree of political uncertainty about the future.

The British Pound is under the hammer against its Canadian counterpart at the start of the new week as foreign exchange markets resign themselves to the fact the UK is to exit the single market following Brexit.

GBP/CAD looked likely to continue falling at the start of the week but a combination of technical signals and a bearish fundamental outlook for CAD suggests more upside on the horizon.

Forecasts show Sterling weakening to 1.55 at the start of 2017 before rebounding to 1.63 at the end of 2017.

The main driver for CAD in the week ahead will be oil prices rather than yield differentials, says Stephen Gallo of BMO Capital Markets.