The pound will rebound on Friday to retest the 1.5800 support area. Falling oil prices and questionable BoC hit CAD. GBP / CAD: Above 1.5800, pair area 1.6000. , GBP made a surprise comeback against the Canadian dollar on Friday, rising above the 1.5655 area to reverse Thursday’s decline and retest the four-month high of 1.5800 at the time of writing. CAD REMAINS UNDER PRESSURE AFTER BOC DOVISH WATCH The Bank of Canada surprised markets on Wednesday by raising interest rates by „only” 50 basis points, compared to expectations of 0.75%. In addition, the bank’s statement marked the end of the tight road amid a gloomy global economic outlook, sending the Canadian dollar down across the board. In addition, the slow increase in the price of crude oil, Canada’s most important export, has increased pressure on the loonie. U.S. benchmark WTI crude is trading about 0.5% lower on the day near $88.00, after Thursday’s close of $89.70. In the UK, the appointment of Rishi Sunak as British Prime Minister has kept the pound in supply reasonable in recent days. The promise to restore economic stability in his first speech calmed investors who were scared by the economic plan of his predecessor. GBP / CAD: ABOVE 1.5800, PAIR CAN REACH 1.60 AREA Consolidation above 0.5800 is likely to reinforce the upside and push the pair to 1.5970 (200-day SMA) before the psychological level of 1.60.00. However, the pair can take a breather after this week’s nearly 00 pip rally. Immediate support is at 1.56 5 (October 27 low) and then the 100-day SMA at 1.5 35. A turn below this level would negate the positive move and open the way to the October 21 low of 1.5315.

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