Chart Art: Potential support for GBP/CAD is near an area of ​​long-term interest

GBP/CAD is having trouble extending the downtrend despite a bullish CAD report.

Will this extend the pair for weeks Uptrend?

We look at the daily chart for more evidence:

If you miss it yourself, Canada just dropped its CPI numbers for May Which showed faster-than-expected increases in consumer prices in May.

Other inflation measures also came in hotter than market estimates, reducing the odds of another Bank of Canada (Bank of Canada) Lowering the interest rate and encouraging demand for the Canadian dollar.

However, GBP/CAD barely reflects the bullish event for the Canadian dollar. The pair remained at the 1.7325 area, near the 1.7295 pivot point line and the 38.2% – 50.0% Fibonacci retracement levels.

More importantly, the GBP/CAD pair does not appear to have made new lows below the key resistance area as of late 2023.

Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your financial homework on the British pound and the Canadian dollar yet, it’s time to check out Economic Calendar And stay informed Daily essential news!

Will failure to continue buying the Canadian dollar lead to an uptrend for GBP/CAD?

Note that the pair has made higher highs and lower lows since its discovery supports At 1.6900 in May. If the pair draws enough upward pressure around potential pullback areas, GBP/CAD could revisit its inflection point at 1.7400 if not its previous highs at 1.7600.

Of course, GBP/CAD bulls may also be preparing for further losses.

If higher crude oil prices and less cautious Bank of Canada sentiment continue to support demand for the Canadian dollar, GBP/CAD may trade below the 1.7300 level and head towards previous areas of interest such as 1.7000 or 1.6900.