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.
