Graphically (weekly chart) there is a good short signal on GBP/CAD. The currency pair is moving within a bullish channel, but the price has reached the trendline of resistance of the channel, a static resistance, and the 200-day Simple Moving Average. Not only. On the weekly candlestick chart (I used the Heikin Ashi chart) is forming, at the moment, a Doji with long upper shadow.
Fundamental consideration. GBP/CAD this week is got back to pre-Brexit level. I think this represents a good level where to short the currency pair. From June 2016, UK data didn't get any better (excluded employment data with an increase in the wages). Britain’s economy grew at a slower rate than first thought in 2017.
Furthermore, the United Kingdom is experiencing a moment of uncertainty, both for what will be the effects of Brexit (it will enter into force in March 2019), and politicians with Prime Minister Theresa May who doesn't have a majority and has been beaten in Parliament several times. Inflation 3%.
The Canadian economy grows at higher rhythms. It's estimated to have grown by 3.0 percent in 2017, and the labour market slack has been absorbed more quickly than expected. The inflation is close 2% target.
In conclusion, I think CAD will appreciate against GBP in next weeks.
Fundamental consideration. GBP/CAD this week is got back to pre-Brexit level. I think this represents a good level where to short the currency pair. From June 2016, UK data didn't get any better (excluded employment data with an increase in the wages). Britain’s economy grew at a slower rate than first thought in 2017.
Furthermore, the United Kingdom is experiencing a moment of uncertainty, both for what will be the effects of Brexit (it will enter into force in March 2019), and politicians with Prime Minister Theresa May who doesn't have a majority and has been beaten in Parliament several times. Inflation 3%.
The Canadian economy grows at higher rhythms. It's estimated to have grown by 3.0 percent in 2017, and the labour market slack has been absorbed more quickly than expected. The inflation is close 2% target.
In conclusion, I think CAD will appreciate against GBP in next weeks.