GBP/CAD: Gains through 1.6950 to trigger additional strength back to low 1.70s – Scotiabank

GBP/CAD is trying to stabilize after nine consecutive days of losses. Economists at Scotiabank expect the pair to inch higher towards 1.6950, then above the 1.70 level.

GBP/CAD is showing some signs of renewed demand

“GBP/CAD is showing some signs of renewed demand near the late 2021 lows which is consistent with the bullish, long-term technical signal that developed around the December rebound in the GBP. The Dec low at 1.6650 must hold for that signal to remain valid.” 

“We remain of the view that GBP/CAD looks relatively ‘cheap’ here, near the base of the sideways range that has persisted since 2020, and we look for GBP gains through 1.6950 to trigger additional strength back to the low 1.70s.”