Source: PaxForex Premium Analytics Portal, Technical Insight

According to Danske Bank, Loonie might get support from market expectations regarding a rate hike by the Bank of Canada. These expectations are built into the price and might hold up. Experts believe the Central Bank of Canada will raise the rate in the 3rd quarter of 2022 and then implement 3 more rate hikes before the end of 2023.

GBP/CAD,D1

Pivot: 1.6996

Analysis:

While the price is below 1.7183, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.6996
• Take Profit 1: 1.6854
• Take Profit 2: 1.6624

Alternative scenario:

If the level 1.7183 is broken-out, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.7183
• Take profit 1: 1.7416
• Take Profit 2: 1.7555

Comment:

RSI shows the possibility of a downtrend in the medium term.

Key levels: