GBP/CAD Up 2 Pips On Hourly Chart, in a Downtrend Over Past 90 Days; Sentiment Suggests Sellers in Charge

Hourly Update

(Last Updated December 20, 2021 1:40 GMT)

At the moment, 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 4 of the past 5 hours. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. The moving averages on the hourly timeframe suggest a choppiness in price, as the 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)

The choppiness in the recent daily price action of GBPCAD continues; to start today, it came in at a price of 1.70597, up 33 pips (0.19%) since the day prior. Out of the 39 instruments in the Forex asset class, GBPCAD ended up ranking 9th for the day in terms of price change. Let’s take a look at 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 1.6943, 1.6941, 1.7147 and 1.7183 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 87.1 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. For additional context, note that price has gone up 16 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCAD, with 0 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 0, which is quite bearish. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

At the moment, price is at the resistance area of 1.70700. If it fails to break through to the upside, there’s a possibility that price will create an inverse head & shoulder pattern.