GBP/CAD goes south toward 1.6820 amid Brexit risks

GBP/CAD gravitates downward, UK GDP records did now not underpin.
The pair desires tremendous good points to proceed its northward journey.
GBP/CAD faces hard resistance, should probable prolong the downtrend.
GBP/CAD has been at its lowest given that the establishing of the year; at the time of writing, buying and selling at 1.6820 all through the Asian session on Friday. The cross-currency pair used to be remaining considered buying and selling at comparable tiers close to June 2020 troughs.

Weaker than predicted UK macroeconomic information for the July-September period, which the traders barely ignored, has weighed barely on GBP/CAD. Along with this, uncertainty hovering round Brexit negotiations, which includes the developing talks of the European Union (EU) suspending its exchange deal, might also proceed to dampen the sterling. However, the have an impact on may also no longer be as sturdy as it has been so far.

On the different hand, USD/CAD is buying and selling positively on the again of the sturdy US greenback as inflation records revives bets of tighter economic policy, cushioning the draw back in the cross.

The facts on US patron prices, launched on Wednesday, has surpassed economists’ expectations and the treasury yields have rebounded, buying and selling at 1.57%, at the time of writing.

Ahead of a mild monetary calendar, with merchants nevertheless reeling from US inflation and UK GDP figures, Bank of England’s (BoE) Jonathan Haskel speech will be awaited for some buying and selling incentives.

GBP/CAD Technical Levels
After paring little features on Thursday, the pair stays caught with bearish vibes, eyeing weekly-low 1.6732 as support. Further south, it will discover a month-to-month low of 1.6891.

The ride north stays a undertaking with Simple Moving Averages (SMAs) like 21, 50, 100, placing thorns at 1.6942, 1.7138 and 1.7233, respectively.

 

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