The GBP to CAD rate enters the new month having found a modicum of support in the form of the 1.85 level. However, the outlook remains skewed in favour of the Canadian unit.
The pound to Canadian Dollar exchange rate took a dive in the wake of news Canadian economic growth numbers blew analyst expectations.
There has since been a recovery in sterling’s position, but to us it looks unconvincing.
A slew of technical indicators on the exchange rate’s daily historical charts are advocating for further losses.
Indeed, “GBPCAD retains a Soft undertone. The cross is still in consolidation mode and price signals remain equivocal on the directional risks from here,” says analyst Shaun Osborne at Scotiabank.