According to recent research, experts believe that the Pound Sterling is likely to continue its upward trend against the Canadian Dollar in the near future. Shaun Osborne, Chief FX Strategist at Scotiabank, notes that the GBP/CAD pair is still within its long-term bull channel and is currently experiencing a narrowing in its short-term trading range.
The upcoming U.S. presidential election is expected to have a significant impact on foreign exchange markets, with the outcome potentially determining the direction of the U.S. Dollar in the coming months. A win for Trump could lead to a Dollar rally, while a victory for Kamala Harris might see a reversal to levels seen earlier in October.
Interestingly, analysis from Crédit Agricole suggests that the Canadian Dollar may be the least affected by the election results compared to other currencies. This could bode well for GBP/CAD, as a less reactive CAD could allow the Pound to continue appreciating.
Osborne highlights that there is a bullish pennant pattern forming, indicating a potential upward movement in the GBP/CAD pair. He suggests that a break above 1.8070 could pave the way for further gains, with the Pound potentially reaching levels of 1.82/1.83 in the short term.
Overall, the outlook for the Pound against the Canadian Dollar appears positive, with various factors such as the U.S. election and the resilience of the Canadian Dollar playing a role in shaping the currency pair’s future movements. Investors and traders will be closely watching these developments to capitalize on potential opportunities in the forex market.
