GBP/CAD Down 49 Pips in Last 4 Hours, Crosses 100 Day Moving Average; in an Uptrend Over Past 30 Days

GBP/CAD 4 Hour Price Update

Updated July 27, 2020 09:08 PM GMT (05:08 PM EST)

The back and forth price flow continues for GBP/CAD, which started the current 4 hour candle off at 1.7193, down 49 pips 0.28% from the last 4 hour candle. It may be worth observing that GBP/CAD was the worst performer of the 37 members in the Forex asset class over the past four-hour candle.

GBP/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/CAD is up 4 pips (0.02%) since yesterday (opening today near 1.7162), marking the 3rd day in a row an increase has occurred. Compared to its peers in the Forex, GBP/CAD gave its buyers a return that ranked 25th in terms of percentage change since yesterday. The price chart of GBP/CAD below illustrates.

GBP/CAD

GBP/CAD Technical Analysis

Notably, GBP/CAD crossed above its 100 day moving average 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 0.8 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. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. 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 10 days GBP/CAD’s price has gone up 7 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

Of note is that traders in aggregate have opinions on GBPCAD, with 9 buy signals on our radar and 19 sell signals. This imputes a buy/sell ratio of 0.47, which is bearish. 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.

We’ve broken the highs, and are looking to retrace for further continuation upwards. My take on this could be either the 50 fib with EMA or the 38 Fib level with the shorter moving average. Lets see how this plays out.