Preparing for the British economic indicators publication
Technical Analysis Summary GBP/CAD: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, GBPCAD: D1 bounced off the support line of the long-term channel and is trying to grow towards its upper border. A number of technical analysis indicators have formed signals for further growth. We do not exclude a bullish movement if GBPCAD: D1 rises above the last upper fractal: 1.709. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal and the last down fractal: 1.688. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (1.688) without activating the order (1.709), it is recommended to delete the order: the market is undergoing internal changes that were not taken into account.
Fundamental Analysis of -
Getting ready for the Bank of England meetings next week and Bank of Canada on October 27th. Will the GBPCAD quotes grow?
The next meeting of the Bank of England (BoE) will take place on November 4. Earlier, investors believed that the current rate of + 0.1% would be raised to 0.25% in the US and Canada. After a series of statements from BoE representatives, the likelihood of this event diminished next week, but this year there will be another meeting on December 16th. Some market participants do not exclude that BoE may cut its Quantitative Easing program. It is £ 895 billion and has been in effect since November 2020. The rate hike is intended to curb inflation in Britain. In September, it amounted to 3.1% in annual terms. However, against the background of rising fuel prices, in October it may exceed 5%. UK inflation data for October is due out on November 17th. UK Autumn Budget 2021 will be released on October 27, as well as the Nationwide UK House Price Index for October. They can help to refine the inflation forecast and influence the dynamics of the British pound. The next meeting of the Bank of Canada (BoC) will also take place on October 27 and may have a strong impact on the Canadian dollar.