GBP/CAD Down 35 Pips, Crosses 20 and 50 Day Moving Averages; Price Base in Formation Over Past 90 Days

GBP/CAD Price Recap

GBP/CAD enters today at 1.7169 in US dollars, down 35 pips (0.2%) from the day prior. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 6.04% from the day before — and down 24.98% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/CAD ranked 28th yesterday in terms of percentage price change. The price chart of GBP/CAD below illustrates.

GBP/CAD Technical Analysis

Notably, GBP/CAD crossed below its 20 and 50 day moving averages yesterday. 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. Price action traders in particular will want to note that the 90 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 5 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCAD, with 14 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 2.33, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

PLEASE note this is not a signal, for educational purposes only….Accordingly to my analysis, using the Elliot Wave and Fibonacci retracement we should see a move to the downside on this pair….Starting to Sell when the 4tb Wave has respected the Fib level, riding it all the way down to 0.5800Sell: 0.6800SL; 10 pips (0.6810)TP: 10.000 pips (0.5800)Please let me know what your thoughts are.