Chart: Potential correction zone on GBP/CAD

Did you miss the bullish breakout on GBP/CAD?

Better keep an eye on this area of ​​interest in case a retest occurs and the trend resumes.

Take a look at these inflection points I’m tracking over the 4-hour time frame:

GBP/CAD 4 Hour Forex Chart from TradingView

Conciliatory rhetoric from the Bank of Canada (BOC) highlighting the possibility of more interest rate cuts is pulling the Canadian currency south these days.

On the other hand, expectations that the Bank of England (BOE) may keep monetary policy unchanged for the time being are keeping the pound sterling supported.

What will come next Canadian CPI Report and UK inflation data mean for this pair?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on the British pound and the Canadian dollar yet, then it’s time to check the economic calendar and stay up to date with the daily fundamentals!

GBP/CAD recently broke through the strong ceiling at 1.7825 and extended to a high of 1.7965 before stopping the climb.

A correction from this rally could take the pair to the former resistance area right around the 50% Fib or the 100 SMA dynamic support closer to the 61.8% level and the pivot point (1.7800).

Additional volatility is expected right around launch UK CPI figuresas the results will likely shape expectations for the BOE decision later in the week.

Be prepared for a shallow break from support at R1 (1.7900) which lines up with a major psychological note or a break above recent highs at R2 (1.7970) if the GBP bulls are too eager to charge!

Remember to practice proper risk management and be aware of top market catalysts when trading it.