GBP/CAD Up 11 Pips On 4 Hour Chart, in a Downtrend Over Past 14 Days; Pin Bar Pattern Appearing on Chart

GBP/CAD 4 Hour Price Update

Updated May 25, 2020 09:09 PM GMT (05:09 PM 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 1.7054, up 11 pips (0.06%) since the last 4 hour candle. Compared to its peers in the Forex, GBP/CAD gave its buyers a return that ranked 8th in terms of percentage change since the last 4 hour candle.

GBP/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for GBP/CAD, which started today off at 1.70323, up 5 pips 0.03% from the day prior. Out of the 40 instruments in the Forex asset class, GBP/CAD ended up ranking 16th for the day in terms of price change. Here is a price chart of GBP/CAD.

GBP/CAD Technical Analysis

The first thing we should note is that the current price of GBP/CAD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 200 day average, which is 121.2 pips away. It should be noted, though, the 50 day simple moving average turned downwards, which may be a bearish sign. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone down 6 out of the past 10 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCAD, with 17 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 4.25, which is bullish. As for the rationale, technical traders seem to be citing the appearance of channel and triangle technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

The strength of the resistance at the moment seems stronger but time will tell which way the market will head….a uptrend has also formed on the daily time frame….Entries for a long position can be found on smaller time frames