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With crude oil trying to rebound from its sharp tumble, can this Loonie pair fill its weekend gap as well? Here’s what I’m looking at.

Currency Snapshot:

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

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • U.K. GDP at 9:30 am GMT
  • U.K. manufacturing production at 9:30 am GMT
  • U.K. gov’t annual budget release at 11:30 am GMT
  • U.S. CPI at 1:30 pm GMT

What to Watch: GBP/CAD

GBP/CAD 1-hour Forex Chart
GBP/CAD 1-hour Forex Chart

Signs that Russia could still be willing to pursue talks with the OPEC on an output cut appear to be propping crude oil higher, possibly allowing GBP/CAD to fill its weekend gap.

The pair already broke below the short-term symmetrical triangle consolidation pattern to reflect downside momentum for the day. If sellers are strong enough, price could be able to close the gap with the previous week’s closing price around 1.7460.

The U.K. also has some catalysts lined up, namely the monthly GDP and manufacturing production reports for January. The latter has been coming in weaker than expected for four of the last five months, so there’s a chance for a downside surprise that might weigh on overall growth figures.

If risk-on flows remain steady throughout the London session or if U.K. data disappoints, a short play on this pair until the previous week close could work out in the next few hours. Just make sure you check GBP/CAD volatility as a guide for setting exit levels!