GBPCAD Up 4 Pips Over Past Hour, Breaks Below 20 Day Average; Price Base in Formation Over Past 30 Days

Hourly Update

(Last Updated September 8, 2020 15:16 GMT)

At the time of this writing, GBPCAD’s rate is up 4 pips (0.02%) from the hour prior. This is the 2nd straight hour GBPCAD has seen its price head up. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. Price action traders may also wish to note that we see some doji and pin bar candlestick patterns 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 entered today at 1.73364, down 94 pips (0.54%) from the previous day. Out of the 40 instruments in the Forex asset class, GBPCAD ended up ranking 38th for the day in terms of price change. Below is a price chart of GBPCAD.

GBPCAD

GBPCAD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBPCAD crossed below its 20 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 20 day average, which is 26 pips away. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. Price action traders in particular will want to note that the 30 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 6 out of the past 10 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPCAD, with 15 buy signals on our radar and 7 sell signals. This imputes a buy/sell ratio of 2.14, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

GBPCAD waxay sameysay descending channel, N.B ;- blse aan usugno inta ay inooga caddeyneyso in uu yaha suuqani sida aan u analys-gareynay


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram