GBP/CAD is a pair to watch today with inflation data from the UK and Canada featured. The cross tried to resume the rise from 1.4069 this week, and breached 1.5811 resistance. Yet, there is no clear follow through buying so far.
Looking at the bigger picture, it’s now pressing an important resistance at 1.5875 (2019 low). 55 week EMA (now at 1.6012) is also in proximity. Rejection by this resistance zone, followed by break of 1.5167 support, will keep medium term outlook neutral-to-bearish.
However, sustained break of the resistance will solidify the case of bullish trend reversal. Further break of 61.8% projection of 1.4069 to 21.5811 from 1.5167 at 1.6244 will likely prompt upside acceleration to 100% projection at 1.6909.
