The Canadian Dollar-to-Pound forecast is an indication of where technical and fundamental analysts think the GBPCAD price may be in the future. You can use these exchange rate forecasts to help you decide if now is the right time to buy Pound Sterling with Canadian Dollars, or if you should wait until the price improves.
GBPCAD Forecast highlights:
- CAD pauses its weakness against GBP, as UK economic growth outlook darkens.
- Short-term CAD strength may push rate to 1.750
- Aim to buy Sterling on modest CAD rallies
How has GBPCAD performed recently?
GBPCAD, the abbreviation for the FX rate between Canadian Dollars and Pound Sterling, is trying to force a trend. But without a significant imbalance between supply and demand, prices are pretty much stuck in a defined range.
The rate has been bouncing up and down in a rather predictable manner since last August. Each time prices surged above 1.800 (GBP stronger), a correction followed soon after.
According to this rhythm, prices are retracing from the 1.810 peak to 1.775 today (see below).
Naturally the near-term downside target is pencilled in at 1.740, a level thrice reaffirmed as support. Note this area appears fairly important on the chart – since it acted as prior resistance and now as support. A break through this floor may shatter the supply-demand equilibrium.
Is it a good time to buy GBP with CAD?
The value of Canadian Dollars has been shrinking since the middle of 2023. Then, C$1.65 was required to buy one Pound Sterling. Now, it takes more than $1.75.
However, Sterling is on a short-term downtrend. If you do not need exchange Canadian Dollars for GBP immediately, perhaps waiting for the rate to drop further into the 1.750 may be a better tactic. You could buy GBP with multiple transaction as prices slide into 1.750.
Of course, you may wait until prices submerged below 1.740 before buying GBP in one transaction. Whether this will happen in the medium term is hard to say.
Will CAD get stronger against GBP in 2025?
The Bank of Canada is slashing interest rates. From 5.0 percent last April, the central bank has cut interest rates six times to 3.0 percent. There is usually one reason why central bank is cutting interest rate this aggressively: weakening economic growth.
In the latest monetary meeting back in January, the Bank of Canada spelled out this worry by stating that “growth in the Canadian economy was softer than expected in the third quarter of 2024.” If you include the consequences of the current tariff war between US and Canada, you will understand why the Canadian central bank has continued to slash borrowing costs. It is enacting monetary defensive measures in view of the growing downside economic risks.
But most of this dovish monetary policy appears to have been priced in by the market.
With the Bank of England also cutting rates, GBPCAD is trading sideways. The market needs to see confirmation signals that a cyclical upswing is happening in Canada before CAD will appreciate in a sustained way.
What is the GBPCAD forecast in weeks?
Over the medium term, most brokers are expecting the rate to resume its the rally above 1.820.
But will the rate now falling sharply following Bank of England’s rate cut, are these forecasts overly (GBP) optimistic? Perhaps. But there is technical floor at 1.740-1.750 that may help to halt GBP’s slide. Hence I wouldn’t chase CAD too aggressively due to the volatile price action.
Source: ExchangeRates.org.uk
Where is the best place for buying large amounts of GBP from Canadian Dollars
There are two different ways people buy GBP from Canadian dollars:
- Through a currency broker – when transferring money abroad
- Through a forex broker – when speculating on the price of currency
You can use this comparison table of Canadian currency transfer companies to see how many currencies they offer, what the minimum GBP transfer is and if they offer forwards and currency options as well as when they were established. You can either visit each currency broker individually or use our currency quote comparison tool to request multiple exchange rates.
Or, if you are more interested in trading GBPCAD you can compare Canadian forex brokers here.
How many GBP does 1 Canadian Dollar get at the live exchange rate?
At the live current CADGBP exchange rate 1 CAD is worth 0.5561 GBP which is a change of 0% from the previous day’s closing price. Over a week CADGBP is 0%, compared to its change over a month of -1.43% and one year of -5.05%.
CADGBP exchange rate data is updated every 15 minutes.
Jackson is a core part of the editorial team at GoodMoneyGuide.com.
With over 15 years industry experience as a financial analyst, he brings a wealth of knowledge and expertise to our content and readers.
Previously Jackson was the director of Stockcube Research as Head of Investors Intelligence. This pivotal role involved providing market timing advice and research to some of the world’s largest institutions and hedge funds.
Jackson brings a huge amount of expertise in areas as diverse as global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University and has authored nearly 200 articles for GoodMoneyGuide.com.
You can contact Jackson at jackson@goodmoneyguide.com
