GBP/CAD

 A broad-based bullish reversal appears to be taking place on the GBP/CAD pair.

With much uncertainty plaguing the Pound and the Canadian Dollar potentially supported by what is expected to be strong employment and trade data in the coming week, the pair is marginally exposed to downside risks even though the technical indications are still slightly bullish.

The GBP/CAD exchange rate is showing a bullish flag shaped pattern which forecasts substantially higher rates, and a target in the vicinity of 1.71.

The outlook for both the Canadian Dollar and the Pound are mixed due to a high degree of political uncertainty about the future.

The British Pound is under the hammer against its Canadian counterpart at the start of the new week as foreign exchange markets resign themselves to the fact the UK is to exit the single market following Brexit.

GBP/CAD looked likely to continue falling at the start of the week but a combination of technical signals and a bearish fundamental outlook for CAD suggests more upside on the horizon.

Forecasts show Sterling weakening to 1.55 at the start of 2017 before rebounding to 1.63 at the end of 2017.

The main driver for CAD in the week ahead will be oil prices rather than yield differentials, says Stephen Gallo of BMO Capital Markets.

The GBP/CAD could rise this week due to a potentially dovish Central Bank commentary, and increasing Pound strength on soft Brexit hopes.

The 171st OPEC Meeting is Underway in Vienna; Current Feedback Suggests a Deal Has Already Been Brokered and Conversations are Now About Logistics; GBP/CAD is Technically Vulnerable to a Breakdown.

The Canadian Dollar is likely to rise versus the pound after Wednesday’s OPEC meeting when the oil exporting cartel will probably seal a supply deal.

Inflation data in the UK and Canada are likely to be the main drivers of the currencies this week.

GBP/CAD has been in a medium-term down-trend ever since breaking below the 1.97 level in February.