GBP/CAD goes south toward 1.6820 amid Brexit risks

GBP/CAD gravitates downward, UK GDP data did not underpin.
The pair needs substantial gains to continue its northward journey.
GBP/CAD faces tough resistance, could likely extend the downtrend.

Sounava Ray Sarkar Independent Analyst

GBP/CAD has been at its lowest since the beginning of the year; at the time of writing, trading at 1.6820 during the Asian session on Friday. The cross-currency pair was last seen trading at similar levels near June 2020 troughs.

Weaker than expected UK macroeconomic data for the July-September period, which the investors slightly ignored, has weighed slightly on GBP/CAD. Along with this, uncertainty hovering around Brexit negotiations, including the growing talks of the European Union (EU) suspending its trade deal, may continue to dampen the sterling. However, the impact may not be as strong as it has been so far.

On the other hand, USD/CAD is trading positively on the back of the strong US dollar as inflation data revives bets of tighter monetary policy, cushioning the downside in the cross.

The data on US consumer prices, released on Wednesday, has exceeded economists’ expectations and the treasury yields have rebounded, trading at 1.57%, at the time of writing.

Ahead of a light economic calendar, with traders still reeling from US inflation and UK GDP figures, Bank of England’s (BoE) Jonathan Haskel speech will be awaited for some trading incentives.

GBP/CAD Technical Levels

After paring little gains on Thursday, the pair remains stuck with bearish vibes, eyeing weekly-low 1.6732 as support. Further south, it will find a monthly low of 1.6891.

The journey north remains a challenge with Simple Moving Averages (SMAs) like 21, 50, 100, putting thorns at 1.6942, 1.7138 and 1.7233, respectively.

Overview
Today last price	1.6825
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.6822

Trends
Daily SMA20	1.6948
Daily SMA50	1.7149
Daily SMA100	1.7235
Daily SMA200	1.7272

Levels
Previous Daily High	1.6871
Previous Daily Low	1.6722
Previous Weekly High	1.6994
Previous Weekly Low	1.6732
Previous Monthly High	1.7196
Previous Monthly Low	1.6891
Daily Fibonacci 38.2%	1.6814
Daily Fibonacci 61.8%	1.6779
Daily Pivot Point S1	1.6739
Daily Pivot Point S2	1.6656
Daily Pivot Point S3	1.6589
Daily Pivot Point R1	1.6888
Daily Pivot Point R2	1.6954
Daily Pivot Point R3	1.7037

Author

Sounava Ray Sarkar

Independent Analyst

Sounava has been working as a Journalist since 2012. He has worked with several reputed media organizations in various capacities before settling as a writer and news editor for business and technology segments.

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