GBP/CAD at Day's Peak ahead of Canadian Employment Data

GBP/CAD at Day's Peak ahead of Canadian Employment Data

6 May 2016, 14:26
Roberto Jacobs
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GBP/CAD at Day's Peak ahead of Canadian Employment Data

The GBP/CAD pair maintained its bid tone and has now moved to five week peak of 1.8678 ahead of the monthly Canadian labor market report for April due today.

Extending its recovery from the lowest level since Jan. 2015, touched in April, the pair now headed for a second week of advances. The Canadian economy is projected to have added only 1,000 jobs in April and the unemployment rate is expected to rise to 7.2%. Moreover, weakness in crude oil prices has also failed to extend any support to the Loonie.

The pair currently trading above its short-term moving averages (10,20,50-day SMAs) and hence, seems more likely to extend its upward trajectory in the near-term.

Technical levels to watch

From current levels, the pair is likely to make an attempt towards testing its immediate resistance 1.8780, marking 23.6% Fibonacci retracement level of 2.0923-1.8105 sharp down-slide, with 187.00 round figure mark acting as intermediate resistance.

On the flip side, weakness below 1.8650 level might continue to find immediate support at 50-day SMA region, near day's through 1.8600 handle. Weakness back below 1.8600 level and a subsequent drop below Thursday's low now seems to negate the bullish bias, making it vulnerable to continue drifting lower, even below 1.8500 psychological mark support, towards testing its next major support near 1.8400 round figure mark.


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