GBPCAD Down 12 Pips Over Past Hour, Entered Today Down For the 4th Straight Day; Price Base in Formation Over Past 14 Days

Hourly Update

(Last Updated January 8, 2021 3:20 GMT)

Currently, GBPCAD’s rate is down -12 pips (-0.07%) from the hour prior. This is the 2nd hour in a row GBPCAD has seen its price head down. Regarding the trend, note that the strongest trend exists on the 100 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on GBPCAD. Given that we see downtrend on the 20 and 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 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 38 pips (0.22%) since yesterday (opening today near 1.72083), marking the 4th straight day a decrease has occurred. Relative to other instruments in the Forex asset class, GBPCAD ranked 31st yesterday in terms of percentage price change. Below is a price chart of GBPCAD.

GBPCAD

GBPCAD Technical Analysis

Notably, GBPCAD crossed below its 20 and 50 day moving averages 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 100 day average, which is 6.7 pips away. Volatility for GBPCAD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 30 days GBPCAD’s price has gone up 17 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCAD, with 7 buy signals on our radar and 2 sell signals. This imputes a buy/sell ratio of 3.5, which is bullish. As for the rationale, technical traders seem to be citing the appearance of double top and elliott wave technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

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