2026-10-23 Readings lean bearish
GBP/CAD tests last week's low as Canadian dollar strength weighs on the pair
The British pound is losing ground against a stronger Canadian dollar today. The pair is trading near 1.87598 and testing key support from last week. Markets are quiet so far, using only a quarter of the average daily range.
Trend and momentum
The four-hour trend remains up, but the one-hour structure has shifted down. Momentum is weak, with the one-hour RSI at 37.96 and the four-hour RSI at 37.61. The one-hour Bollinger Bands are squeezing with price inside, and there is no MACD cross. Volatility is low, with only 25 percent of the average daily range used today.
Key levels
Price is currently testing last week's low at 1.87577. A break below this could open the path toward yesterday's low at 1.87378 and the recent four-hour low at 1.87330. On the upside, resistance sits at yesterday's high of 1.88154. Pushing past that level would shift focus to last week's high and the four-hour high, both at 1.89060.
News and events this week
Inflation data dominated earlier this week, with Canada's CPI released on October 19 and the UK's CPI on October 21. Markets are pricing in high odds of a Bank of Canada rate hike next week, which has supported the Canadian dollar. Traders are now watching retail sales data from both the UK and Canada scheduled for Friday, October 23.
What would push it higher
If buyers defend last week's low, the pair could bounce back toward yesterday's high. Strong UK retail sales or weak Canadian data could also spark a recovery.
What would push it lower
If price breaks firmly below last week's low, sellers could drive the market toward the recent four-hour lows. Continued expectations of a Bank of Canada rate hike could add further downward pressure.
The engine has no open signal on this pair. Today's signals →