GBP/CAD Up 8 Pips in Last Hour, Entered Today Up For the 5th Straight Day; Price Base in Formation Over Past 90 Days

Hourly Update

(Last Updated November 17, 2022 1:44 GMT)

At the moment, GBPCAD’s rate is up 8 pips (0.05%) from the hour prior. GBPCAD has seen its price go up 5 out of the past 5 hours, thus creating some compelling opportunities for bulls. 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)

GBPCAD is up 123 pips (0.78%) since yesterday (opening today near 1.5872), marking the 5th straight day an increase has occurred. Relative to other instruments in the Forex asset class, GBPCAD ranked 2nd yesterday in terms of percentage price change. The price chart of GBPCAD below illustrates.

GBPCAD

GBPCAD Technical Analysis

Notably, GBPCAD is now close to its 20 and 200 day averages, located at 1.5583 and 1.5875 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 200 day average, which is 2.5 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Price action traders in particular will want to note that the 90 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

We’re seeing some traders come out with interesting conviction on GBPCAD, with 10 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 1.67, which is bullish. As for the rationale, technical traders seem to be citing the appearance of demand zone and supply zone technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Looking for 10 pips short here from 1H open candle.