UK consumer confidence as well as as the Lloyds Business Barometer decreased further in August as Brexit is nearing and uncertainty over which type of Brexit will be delivered remains. The UK labor market remains strong and wage gains are at decade highs, economists expect that consumer borrowed at a stable rate as the housing market shows signs of a bottom. The British Pound has been drifting higher after bouncing off of support levels which pushed the GBPCAD into its next resistance level. Is bullish momentum strong enough for a breakout or will bears force a reversal? This morning’s fundamental analysis will take a look at the breakout potential for this currency pair.

Forex traders will get Canadian GDP data today which is expected to move the Canadian Dollar. Economists anticipate a strong second-quarter performance, but it is not expected to transcend into the third-quarter with June favored to show a Canadian economy grinding to a near standstill. Inflationary pressures are also expected to show an increase for July as measured by the industrial product price index as well as the raw materials price index. How will price action in the GBPCAD be impacted? Subscribe to the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders!