GBP/CAD Up 38 Pips On 4 Hour Chart, Fares the Worst Out of Forex; Pin Bar Pattern Appearing on Chart

GBP/CAD 4 Hour Price Update

Updated July 24, 2020 01:04 PM GMT (09:04 AM EST)

The choppiness in the recent four-hour candle price action of GBP/CAD continues; to start the current 4 hour candle, it came in at a price of 1.7123, up 38 pips (0.22%) since the previous 4 hours. On a relative basis, the previous 4 hours were pretty good: GBP/CAD bested all 37 of the assets in the Forex class 🙂

GBP/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/CAD entered today at 1.70663, down 19 pips (0.11%) from yesterday. It may be worth observing that GBP/CAD was the worst performer of the 40 members in the Forex asset class over the past day. Let’s take a look at price chart of GBP/CAD.

GBP/CAD Technical Analysis

Coming into today GBP/CAD is now close to its 20, 50, 100 and 200 day averages, located at 1.705, 1.6999, 1.7163 and 1.7174 respectively, and thus may be at a key juncture along those timeframes. 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 20 day average, which is 16 pips away. Volatility for GBP/CAD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed down. Or to simplify this another way, note that out of the past 30 days GBP/CAD’s price has gone up 18 them. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCAD, with 11 buy signals on our radar and 3 sell signals. This imputes a buy/sell ratio of 3.67, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

UPDATE – Rising WedgeDuring yesterday price broke out from a Rising Wedge. Price pulled back and now created a lower low. This means that the possibilities are very high that our targets will be reached.Yesterday idea:https://www.tradingview.com/chart/GBPCAD/rXUOfLio-GBPCAD-Rising-Wedge/