GBP/CAD drifts to 3-year wins; targets yesterday’s 3.5 yr. spike

FXstreet.com (Chicago) - GBP/CAD remains trading above 3-year peaks after breaking through immediate support to reach 1.6442 session highs. The pair traded sideways ahead of UK data and prior to Tokyo’s opening.

At -0.5%, the BRC shop price index for August (MoM) matched past results. The pair reacted positively but was capped by 1.6442 immediate resistance. Price action reveals a short-lived retracement from session highs to 38.2% Fibonacci level at 1.6339 (support). Breaking above 23.6% level, the pair faces resistances at 1.6442 (August 21st highs), 1.6470 (August 29th 2010 highs) ahead of 1.6513 (September 1st highs) and trades above supports at 1.6339 (August 23rd lows), 1.6297 (August 28th highs) and 1.6268 (August 30th lows). According to the FXstreet.com trend index, the pair is strongly bullish on one-hour timeframe analysis and is offered above the EMA20.

In Canada, the interest rate decision is due tomorrow along trade balance results for the month of July. In the UK, the FTSE 100 closed with 0.58% losses on Tuesday.

Flash: Do not expect much upside on AUD/USD beyond 0.9075 - Westpac

After all the partial inputs released last week, Westpac expects Australia’s Q2 GDP at 0.6% q/q, 2.6% y/y, noting, "this is slightly above consensus of 0.5%, with a range of 0.2% to 0.7%."
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Flash: AUD/USD, retracement to 0.9020 may prove buying opportunity - NAB

According to NAB Strategists, the main focus today will be AUD GDP at 11.30am Sydney time, with the Bank expecting 0.4% QoQ and 2.3 YoY VS previous 0.6/2.5 and market consensus for 0.6/2.3.
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