GBP/CAD Up 246 Pips; Breaks Above 100 Day Average

GBP/CAD Price Recap

After 4 down days, GBP/CAD snaps its streak, rising 246 pips (1.45%) over the past day to close at an exchange rate of 1.71955. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 4.21% from the day prior, but up 165.76% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/CAD ended up ranking 10th for the day in terms of day-over-day price change. Below is a price chart of GBP/CAD.

GBP/CAD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/CAD crossed above its 100 day moving average yesterday. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 10 days GBP/CAD’s price has gone up 6 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPCAD, with 7 buy signals on our radar and 15 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 channel technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

GBPCAD overall view on the monthly time frame looks like it is gearing up for a major down swing….Further confirmations and entry zones will be confirmed on the lower time frames….If you are going to take the sell, look for pattern confirmations on the 1h, 4h and Daily time frames.