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20/02/2023

Summary
CAD CPI inflation rates lead the market.

Fundamental analysis
Fundamentally on this pair GBPCAD, we have news coming on this tomorrow in the economic calendar the PMI for both sectors of service and manufacturing on the GBP with positive expectations, On the other hand, we have a CPI inflation rate on the Canadian dollar with expectations of lower than the previous month at  6.1% and this will lead the central bank of Canada the lower the aggressiveness of rising interest rate, In the end, it will lead to weakness the Canadian dollar.    
 

UK Service PMI Prelim

Previous 48
Expected 49.2

UK Manufacturing PMI Prelim

Previous 46.7
Expected 47.4


Canada CPI YoY

Previous 6.3%
Expected 6.1%


Technical analysis
In this 4-hour diagram chart, the market price now is 1.61913, if the market keeps rising and creates an up trend by creating higher highs and higher lows and breaking the previous supply zone at 1.62760 we expect the price will keep pushing up to the oldest supply zone at 1.64730 with 20 moving average pointing up.    
           
 
Trading Recommendation

Trading Direction: Long
Entry Price:1.62768
Target Price:1.64729
Stop Loss: 1.61854