GBPCAD ahead of BOE Rate decision
The GBPCAD pair has broken under 1.7200 and the support area of 1.7172 leading to a sharp decline to 1.7000 after Canadian GDP came in at 0.5% v 0.3% expected.
The price is at 1.7042 and is leaning on support at 1.7000. A continued moved lower would look to target the 1.6800 area followed by 1.6600 if support is broken at the swing low of 1.6760. The 1.63600 area provides traders with a strong area of support before the low at 1.5835.
With the Bank of England announcing its rate decision at midday this pair can experience volatility. A shock move higher above 1.7172 could lead to a retest of the trend line at 1.7380. A break above would need to be confirmed and breech resistance at 1.7470 in order to target the 1.7663 area. From there a short move higher to the swing high at 1.7780 could see much higher levels as price action retraces towards 1.8000.