The Great Britian Pound (GBP) inched higher against the Canadian Dollar (CAD) on Wednesday, increasing the price of GBPCAD to the intraday high of 2.0616 as bulls are seen gaining momentum. The technical bias remains bullish because of a Higher High and Higher Low in the recent rally.
Technical Analysis
As of this writing, the pair is being traded around 2.0588. A hurdle can be noted near 2.0689, the 23.6% fib level ahead of 2.0948, the swing high of the recent upside rally and then 2.1000, the pychological level.
On the downside, the pair is likely to find a support around 2.0528, the 38.2% fib level ahead of 2.0398, the 50% fib level and then 2.0350, the swing low of the recent downside move. The technical bias will remain bullish as long as the 2.0350 support area is intact.
Britain’s NIESR GDP
NIESR’s monthly estimates of GDP suggest that output grew by 0.6% in the three months ending in December 2015 after growth of 0.6% in the three months ending in November 2015. This implies the UK economy expanded by 2.2% in 2015 – a moderation compared to the 2.9% growth in 2014, it remains consistent with the economy growing at close to its long-run potential rate.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.
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