GBPCAD has formed higher lows and higher highs to trade inside a rising channel visible on the 4-hour time frame. If this continues to hold, the pair could set its sights on the next upside targets.

This could be around the mid-channel area of interest around the 1.7300 handle or the channel top around 1.7400. The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. However, the gap between the indicators is narrowing to signal weaker bullish momentum and a potential bearish crossover.

Stochastic has a bit of room to move lower before indicating oversold conditions and might be ready to turn higher soon to signal a pickup in bullish pressure. Similarly RSI is moving down but closing in on the oversold area to signal exhaustion among sellers.

GBPCAD could enjoy additional volatility around the time of the BOE decision as an increase in asset purchases from 745 billion GBP to 845 billion GBP is eyed. No actual changes to interest rates is expected. Votes for these monetary policy decisions are expected to come in unanimously.

Dovish remarks could lead to a break below support for this pair, especially since the UK government just recently announced a new set of stricter lockdown rules. This could mean more downside for the economy as businesses would have to restrict operations, which would also mean weaker consumer spending and overall growth.

Meanwhile the Canadian dollar could be pushed around by the results of the October jobs report. Analysts are expecting to see an increase of 59.7K in hiring versus the earlier 378.2K gain, which should be enough to keep the unemployment rate steady at 9.0%.