Pending GBPCAD Breakout
The GBPCAD continues to remain bounded by 1.6050 – 1.58 as traders await the Bank of England Minutes which will be released tomorrow at 9:30 GMT. As inflation concerns gather momentum, currency traders should not rule out the spilt amongst policy members widening in the coming months. As of late, policy maker Andrew Sentence and Martin Weale are pushing for a rate hike of twenty five basis points amid the stubbornly high consumer prices, while Adam Posen calls for increases in the region’s asset purchases due to growth concerns. In turn a move by another policy maker could dictate GBP price action tomorrow.
With regards to the GBPCAD, I will look for a short opportunity on a 4 hour close below 1.580 or a long position above 1.6050.
GBPCAD 4 Hour Chart
Source: FXCM’s strategy trader – Prepared by Michael Wright
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