GBPCAD Analysis

Introduction

The GBP/CAD pair is sensitive to both the UK’s economic performance and Canadian commodity exports. The Bank of England and the Bank of Canada’s interest rate policies drive this pair, and it can be volatile during periods of economic uncertainty, particularly in the UK and Canada’s oil market.

Fundamentals and Interest Rates

The Bank of England policy is Dovish with the (BOE) current Interest rate 4%. Latest change was Aug 07, 2025 (-25bp)%.
On that side the Bank of Canada policy is Dovish and (BOC) has set its interest rate to 2.25% by latest change, Oct 29, 2025 (-25bp).
(BOE) Higher interest rates generally lead to higher returns on investments denominated in GBP. This tends to attract foreign capital into GBP assets.

Based on the economic and macro fundamental data, The Fundamental Bias of GBP is Weak Bullish and for the CAD is Weak Bearish.
Ziwox considering Weak Bullish bias for this asset and we anticipate long-term price increases.
Our Ziwox A, mid-term Fundamental Score for GBP is -8. and Fundamental Score for CAD is 4. So, base on the Fundamental Score, we predict mid-term downside price movement.

Market Overview & Performance

In the current trading session, "New York", Market risk sentiment is Classic Risk-ON. The Canadian Dollar and Australian dollar recorded the strongest performance, while the Gold and Yen are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a -0.2% decrease against us dollar.
Euro "EUR", performance has been -0.01% down so far
Pond "GBP", performance has been 0.06% up as of now
Australian dollar "AUD", has risen by 0.53%
New Zealand dollar "NZD", has risen by 0.26%
Japanese YEN "JPY", experienced -0.13% fall
Swiss franc "CHF", experienced -0.12% fall so far
Canadian dollar "CAD", has gained 1.03%
Market risk sentiment is ON, This means Investors embrace risk, driving demand for riskier assets and higher-yielding currencies while safe-haven assets weaken.

Market Sentiment and Positioning

GBP COT (Commitments of Traders):

Institutions Net Position on >British Pound is -20262 included 82471 long, 102733 short and -3487 position changed from last week.
So they mainly have a bearish view on this asset and sold GBP for lower prices in long-term.
Last week -3487 repositioning Indicates more sell positions and price pressure in short-term.

CAD COT (Commitments of Traders):

Institutions Net Position on >Canadian Dollar is -150044 included 28366 long, 178410 short and -4936 position changed from last week.
So they mainly have a bearish view on this asset and sold CAD for lower prices in long-term.
Last week -4936 repositioning Indicates more sell positions and price pressure in short-term.

Retail Traders:

Crowd traders or Retail traders are bullish on the GBPCAD with 94% 6% ratio. 0 long pos and 0 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability GBPCAD prices may decrease.

Technical Levels and Support/Resistance

The GBPCAD pair is approaching a critical technical support level near 1.84217.
Technical trend is BUY, If the pair continues to weaken, this support could become a good area to enter a long positions.
On the upside, there is key resistance near 1.87196. Technically, A break above this resistance could signal a shift in momentum, but need to get a confirmation in this area due to the reversal or correction potential.