There has been some interesting price action in the Pound to Canadian Dollar exchange rate (GBP/CAD) already this week, with the pair breaking down by 0.40% on Monday.

The Canadian Dollar dropped in value against all its peers after new data showed a continued cooling in Canadian inflation, raising the odds of further Bank of Canada rate cuts in the coming months.

The Pound to Canadian Dollar exchange rate has recovered further from its early August lows in recent trade and could have scope to test the 1.7750 level in the week ahead, according to the author’s model.

The Pound to Canadian dollar exchange rate has consolidated its second quarter gains but it remains biased to the upside and the author’s model suggests it could trade buoyantly in a 1.7429 to 1.7550 range this week.