GBPCAD recently climbed past the resistance at the 1.7400 handle and reached a high of 1.7643. Price has since retreated and appears to be in the middle of a correction.

The Fibonacci retracement tool shows where buyers are waiting. Price is testing the 38.2% level around the 1.7475 level but might still retest the former resistance near the 50% Fib. A larger correction could last until the 61.8% Fib at 1.7372 that lines up with the 100 SMA dynamic inflection point.

This indicator 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. In that case, GBPCAD could recover to the swing high and beyond.

Stochastic is still heading lower to show that bearish pressure is in play, and the oscillator has room to go before reflecting oversold conditions or exhaustion among sellers. Turning higher could signal that buyers are returning and could defend support. RSI is also on the move down, so price could follow suit while bearish pressure is in play.

Sterling could enjoy additional volatility during the BOE Super Thursday as the central bank will make its rate decision, release the meeting minutes, and release its quarterly monetary policy report.

No actual changes to rates or asset purchases are expected, but downgrades for growth and inflation forecasts are eyed on account of the pandemic and additional lockdown measures.

Meanwhile, the Loonie could take cues from the Canadian jobs report on Friday. A rebound in hiring could mean gains for the commodity currency while a large reduction in employment could trigger losses. The earlier report showed a drop of 62.6K in hiring versus the projected 32.5K drop and an increase in the jobless rate from 8.5% to 8.6%, which was better than the 8.7% forecast.