GBPCAD Forming Bullish MomentumGBPCAD has pulled back into a well-defined support zone between 1.8600–1.8650, now acting as a potential springboard. The daily candles are showing clean price rejection off that level, suggesting that buyers remain in control. A firm bounce from this zone could drive the pair back up toward the 1.8800–1.8850 range. If momentum builds, price may even challenge the yearly high near 1.9030, an ideal upside target for breakout-following strategies.
From a macro perspective, the fundamental picture favors further GBP strength. UK inflation data remains sticky, with headline inflation around 3.8% and CPIH at about 4.2%. This supports expectations for a more cautious Bank of England and limits the rate-cut narrative—keeping sterling relatively firm for now. Meanwhile, the Bank of Canada faces soft domestic data and a dovish tilt. Markets now assign a roughly 33% probability to a BoC rate cut by mid-September, up significantly from earlier this month. This divergence supports upward pressure on GBPCAD as sterling outperforms a fluid loonie.
Newswire confirms the rate dynamics at play: GBP/CAD is holding firm around 1.8720–1.8730, sustained by the BoE-BoC policy divergence. On the broader FX rate scoreboard, GBPCAD is trading near the lower end of its 52-week range between 1.74 and 1.88, right below the yearly high.
This setup presents a compelling risk-reward scenario supported by both chart structure and macro fundamentals. If renewed demand emerges at current support, GBPCAD looks poised to deliver a significant bullish wave—backed by real policy divergence and clear technical validation.
