GBPCAD Up 2 Pips in Last Hour, Came Into Today Down For the 2nd Straight Day; in a Downtrend Over Past 14 Days

Hourly Update

(Last Updated September 22, 2020 0:17 GMT)

At the time of this writing, GBPCAD’s rate is up 2 pips (0.01%) from the hour prior. It’s been a feast for bulls operating on an hourly timeframe, as GBPCAD has now gone up 8 of the past 10 hours. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on GBPCAD. Given that we see an uptrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

GBPCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBPCAD is down 32 pips (0.19%) since the previous day (opening today near 1.70447), marking the 2nd straight day a decline has happened. Relative to other instruments in the Forex asset class, GBPCAD ranked 25th the previous day in terms of percentage price change. Below is a price chart of GBPCAD.

GBPCAD

GBPCAD Technical Analysis

Coming into today GBPCAD is now close to its 20, 50, 100 and 200 day averages, located at 1.721, 1.7253, 1.715 and 1.7195 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 100 day average, which is 105 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. It should be noted, though, that a trend in the opposite direction, going up, exists on the 90 day timeframe. For additional context, note that price has gone down 17 out of the past 30 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPCAD, with 10 buy signals on our radar and 32 sell signals. This imputes a buy/sell ratio of 0.31, which is bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci, trendline and triple top technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

We witnessed 2 rejection off 1.6985 price level signaling to us that BEARISH strength is weakening….I will expect to see a 50.0 fib level retracement as of now where we can see price movement moving towards the ichi cloud….As of now, I am seeing a LONG opportunity but do look out where price heads towards ichi cloud.


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