Instrument of the Week (25-29 March): GBPCAD Spotlight
Discover why FBS reduced the GBPCAD spread and what to do next!
The final week of March 2024 is critical for traders and investors watching the GBPCAD currency pair, with significant economic data releases from the United Kingdom and Canada. The UK will announce its final GDP q/q, which is expected to show a contraction of -0.3%, a key indicator of economic health that could impact the GBP based on the outcome. Meanwhile, Canada’s updated GDP m/m forecast suggests a positive change of 0.4%, indicating a potentially more robust economic performance than previously thought.
These GDP figures are pivotal in gauging the economic landscape in both countries, directly influencing investor sentiment and the value of the GBPCAD pair. A stronger-than-expected performance in either economy could bolster the respective currency, while weaker figures might exert downward pressure. The contrasting expectations – a contraction in the UK and growth in Canada – set the stage for potential volatility in the currency pair.
In the Daily Timeframe, GBPCAD formed an ascending triangle pattern, which is a bullish pattern. The moving averages are also bullish, but the Canadian and UK GDP forecasts may have a bearish impact on the pair.
If the price breaks above the resistance at 1.7320, it will soar to 1.7750. At the same time, a trendline breakdown and a fall below the 1.7150 support will drop the price to 1.6700.
