GBP Under Pressure The short trade issued in GBPCAD from the break of 1.6293 has now hit its final target at 1.5899. Yesterday’s BOE meeting saw the UK central bank issuing a warning of a massive downturn to come in the UK as a result of soaring inflation, ongoing supply-chain issues and tighter monetary conditions. Alongside this, we saw a major upheaval in the UK local elections yesterday which are also weighing on GBP. CAD, meanwhile, is being supported by higher oil prices as crude prices trade back up to highs into the end of the week. While the target for this trade idea has now being hit, bears looking to hold for longer can maintain shorts while the market holds beneath the 1.5899 level, looking for a move down to 1.5744 next.Keep an Eye OnCAD labour market data later today will be the next key data release to watch for this pair. With the BOC back on the hiking path and sounding hawkish in its outlook, strong data today will likely keep CAD well-supported near term. Today’s US labour reports will also be on watch. Current USD strength is impacting GBP more than CAD so any continuation of this theme should keep GBPCAD pressured near term.
Source: Tickmill
