GBPCAD Up 73 Pips On Hourly Chart, Entered Today Down For the 2nd Day In A Row; Breaks Below 50 Day Average

Hourly Update

(Last Updated September 9, 2020 15:16 GMT)

At the moment, GBPCAD’s rate is up 73 pips (0.43%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as GBPCAD has now gone down 8 of the past 10 hours. As for the trend on the hourly timeframe, we see the clearest trend on the 100 hour timeframe. Regarding moving averages, it should first be noted that price has crossed the 20 hour moving average, resulting in them with price now being above it. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

GBPCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBPCAD is down 103 pips (0.59%) since the previous day (opening today near 1.72339), marking the 2nd day in a row it has gone down. Out of the 40 instruments in the Forex asset class, GBPCAD ended up ranking 36th for the day in terms of price change. Here is a price chart of GBPCAD.

GBPCAD

GBPCAD Technical Analysis

Notably, GBPCAD crossed below its 50 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 50 day average, which is 14.5 pips away. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. Or to simplify this another way, note that out of the past 30 days GBPCAD’s price has gone down 16 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCAD, with 15 buy signals on our radar and 9 sell signals. This imputes a buy/sell ratio of 1.67, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

– Looking for Bullish Candles to confirm entryKey Levels:Support – 1.71320, 1.71720Resistance – 1.72400, 1.72975, 200 EMAEntry Zone: Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals….Optimal Entry – 1.71640Supporting Entry – 1.71750Candle Reversals for entry- Bullish Hammer- Bullish Engulfing- Bullish PiercingThe Risk:As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios….Reward / Reward Targets:Optimal Entry 1.71640 – Target 1 1.72400 = 2.7x Reward to RiskOptimal Entry 1.71640 – Target 2 1.72975 = 4.8x Reward to RiskSupporting Entry 1.71750– Target 1 1.72400 = 1.65x Reward to Risk Supporting Entry 1.71750 – Target 2 1.72975 = 3x Reward to Risk


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram