Forex traders will get a broad range of inflation data out of the UK today. Some Bank of England MPC members turned more dovish as the economy struggled in the last two months of 2019. The Brexit transition period and pending trade discussions with the EU are clouding the outlook. The GBPCAD descended into a major horizontal support area, but how will this morning’s inflation data impact price action? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

The Canadian Dollar and the British Pound were two of just three G-10 currencies that outperformed the US Dollar in 2019, but against each other, the British Pound enjoyed a solid rally against the Canadian Dollar. This advance was interrupted by a sell-off that took this currency pair into support, with the bullish chart pattern intact. How will the GBPCAD react to today’s inflation data? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.