Source: PaxForex Premium Analytics Portal, Technical Insight

The Bank of England is expected to increase the interest rate by 50 basis points. There are two important things to focus on here: firstly, the bank’s take on the interest rate and how long it thinks inflation will take to come close to its target. Secondly, where is the upper limit of the bank’s interest rate.

GBP/CAD,D1

Pivot: 1.6457

Analysis:

While the price is above 1.6300, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.6457
• Take Profit 1: 1.6850
• Take Profit 2: 1.7000

Alternative scenario:

If level 1.6300 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.6300
• Take profit 1: 1.6085
• Take Profit 2: 1.5820

Comment:

RSI shows the possibility of an uptrend in the medium term.

Key levels: