The GBP/CAD price is in a strong upward trend as the overall strength of the British pound continues. The pair is trading at 1.7495, which is the highest it has been since August last year. Other pairs like the GBP/USD and GBP/JPY have also continued to rally. The GBP/AUD has moved to the highest level this month.
What happened: The GBP/CAD price is rising after the relatively impressive UK employment numbers that were released yesterday. The data showed that the UK unemployment rate rose to 5.0%, which was better than the expected 5.1%. Wages rose and the number of people who filed for claims declined.
Therefore, today’s price action is possibly because investors have started to rule-out negative interest rates. However, it is worth noting that the UK situation has gotten worse since November since the country is now dealing with the new strain of the virus. Also, the employment numbers were good because of the government’s furlough program that will expire in April.
The GBP/CAD is in a strong uptrend as shown in the daily chart below. The current price is important because it was the highest points in December, September, May, and January last year. This trend is supported by the 20-day and 50-day exponential moving averages. It has also formed an ascending triangle pattern.
Therefore, while the pair will find a strong resistance at the current level, there is a possibility that it will break-out if bulls are able to move above 1.7500. If this happens, the next level to watch is 1.7557, which is the highest level on September 1.
GBPCAD technical chart