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Fears of a hard Brexit just won’t let up, and the upcoming inflation reports from the U.K. could bring another set of losses for this sterling pair.

Currency Snapshot:

Major Forex Pairs Performance from MarketMilk
Major Forex Pairs Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • German producer price index at 8:00 am GMT
  • ECB head Lagarde’s speech at 9:30 am GMT
  • German Ifo business climate index at 10:00 am GMT
  • U.K. headline and core CPI at 10:30 am GMT
  • Euro zone final CPI readings at 11:00 am GMT

What to Watch: GBP/CAD

GBP/CAD 4-hour Forex Chart
GBP/CAD 4-hour Forex Chart

This pair has been trending higher for quite some time, but it looks like a break below its rising trend line on the 4-hour chart is due. If so, a reversal from the uptrend might be in the works.

Sterling remains under pressure as PM Johnson hinted at pushing the Brexit deadline further, which could run up the risk of a hard exit once more.

It also helps that the trend is still overwhelmingly “bearish” across MarketMilk’s moving averages:

GBP/CAD Trend from MarketMilk
GBP/CAD Trend from MarketMilk

Meanwhile, the Loonie has been enjoying a bit of support thanks to crude oil rallies on the heels of a delay in the next batch of tariffs from Uncle Sam.

A short play below the 1.7250 minor psychological mark and a target that’s roughly the size of the pair’s average volatility could be enough to catch any downside momentum.

Here’s GBP/CAD’s average volatility per day if you need help placing your exits:

GBP/CAD Volatility from MarketMilk
GBP/CAD Volatility from MarketMilk