Pound to Canadian Dollar Week Ahead Forecast: 1.82/1.83 in Scope

GBP/CAD Retreats from Intraday Highs

The Pound to Canadian Dollar currency pair (GBP/CAD) reached an intraday high of 1.8380 during the European session on Monday before retracing lower. The pair was last seen trading at 1.8310, down 0.2% on the day. Sterling traders remain on edge as they await the outcome of the Bank of England’s (BoE) policy meeting on Thursday. The BoE is widely expected to raise interest rates by 50 basis points (bps), but there is some uncertainty about the central bank’s forward guidance.

Strong US Dollar Weighs on GBP/CAD

The GBP/CAD exchange rate has been under pressure over the past few weeks as a result of the strong US dollar. The US dollar has been rallying against most major currencies as investors seek safe havens amid the ongoing uncertainty in the global economy. The US Federal Reserve is also expected to raise interest rates by 50 bps on Wednesday, which is another factor that is likely to support the US dollar in the near term.

Technical Analysis: GBP/CAD Hovers Near Key Support Level

From a technical perspective, the GBP/CAD exchange rate is hovering near a key support level at 1.8250. If the pair breaks below this level, it could fall further to 1.8100. On the upside, resistance is located at 1.8400. A break above this level could lead to a rally to 1.8500.

Economic Calendar: GBP/CAD Traders to Watch BoE, Fed Meetings

The GBP/CAD exchange rate will be sensitive to the outcome of the BoE and Fed policy meetings this week. If the BoE raises interest rates but signals that it is close to the end of its tightening cycle, the GBP/CAD could fall. On the other hand, if the Fed signals that it is willing to raise interest rates more aggressively than previously anticipated, the GBP/CAD could rise.