GBP/CAD Rallies as Britain's Manufacturing News Looms

FXOpen

The British Pound (GBP) extended upward movement against the Canadian Dollar (CAD) on Friday, taking the price of GBP/CAD to 1.8119, ahead of Britain’s Manufacturing PMI. The technical bias remains bullish due to a Higher High on the daily chart.

Technical Analysis

As of this writing the pair is being traded around 1.8112 well above 1.8080, the opening price. The GBP lost strength in the early Asian session taking the price to 1.8070, but regained its position and is back to the current level. On upside, a resistance can be noted around 1.8195 (23.6% Fib Level of the last leg from the 1.7570 low to 0.8398 low), ahead of 1.8171 (200 SMA) and then 1.8119, the yesterday’s high. Currently, the pair is struggling to clear the 1.8119, as demonstrated in the following chart.

gbpcad

On the downside, an immediate support can be seen around 1.8070, the 38.2% Fib level ahead of 1.8026. The said level has been supporting the pair from last previous days. The next support level can be noted around 1.7994 (200 SMA), ahead of 1.7969 (the confluence of 50% level and 100-day SMA) as demonstrated in the above chart.

The technical bias is bullish because of higher highs and higher lows on the daily chart. The bias will remain bullish as far as the support area 1.7540 is intact.

Markit Manufacturing PMI (Dec)

The Britain’s manufacturing purchasing manufacturing index remained 53.7 points this December as compared to 53.5 points in the month before.  Being an important indicator of business conditions and overall economic condition in UK, a higher reading is considered bullish for the British pound. Thus a better than expected actual outcome will exert buying pressure in the price of GBP/CAD.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair is preferred if the price leaves a bearish engulfing or pin bar on the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication EUR/USD Analysis: Euro Showing Signs of Strength Market Analysis: EUR/USD Starts Increase While USD/JPY Dips Dollar Holds Steady after Producer Price Data Release GBP/JPY: Price Corrects from 8.5 Year High

Latest articles

Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication

The fundamental data of recent trading sessions contributed to a slight strengthening of commodity and European currencies. Thus, the AUD/USD pair, after forming a bullish engulfing combination, managed to confidently gain a foothold above 0.6500. The pound/US

Forex Analysis

EUR/USD Analysis: Euro Showing Signs of Strength

Today news was published about the values of PMI indices for European economies. Data from France was encouraging: → French Flash Manufacturing PMI: actual = 46.8, expected = 43.5, a month ago = 43.1; → French Flash Services PMI: actual = 48.0,

Shares

NVDA Share Price Soars 11% after Report

The signs of concern we wrote about yesterday have largely subsided. After three days of declines, the price of E-mini Nasdaq 100 futures bounced off the lower boundary of the channel (see yesterday's chart) and rose, led by NVDA stock.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.