(Last Updated October 28, 2020)
Hello! This is the news page for GBPCAD. Below you’ll find our daily market updates. Here’s a technical analysis summary of where things currently stand:
Over the past 90 days, a clear trend does not seem to be in place for GBPCAD. As such, this might be an opportunity for rangebound traders, or trend traders focused on longer timeframes.
Nuances in the trend on GBPCAD can be understood by observing the behavior of its moving averages. The 100 and 200 day averages are pointing upwards, suggesting a bullish trend, in contrast to the downward-facing 20 and 50 day averages that imply a bearish trend. Ultimately, this suggests a bearish trend on shorter timeframes, compared to a bullish trend when observing more than 3 months of data. Moreover, today we saw the 20 moving average turn bearish.
Below is a chart showing GBPCAD’s price with its moving averages.
In terms of correlations over the past week for GBPCAD, it has been most correlated with GBPCHF. Over the past 14 days, however, the asset showing the strongest correlation to GBPCAD is GBPUSD. On the flip side, GBPNZD has been the asset least correlated with GBPCAD — but over the past two weeks, the asset least correlated with GBPCAD has been USDCAD. The chart below illustrates GBPCAD against its least correlated assets.
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At the moment, GBPCAD’s rate is up 0.0085 (0.5%) from the week prior. Moreover, note that this is the 2nd consecutive week GBPCAD has seen its price head up. If you’re a trader with a preference for rangebound markets, you may wish to note that there isn’t a clear trend on the 5, 10 and 20 week timeframes. Regarding moving averages, it should first be noted that price has crossed the 20 and 50 week moving averages, resulting in them with price now being above them. Looking further out, the moving averages on the weekly timeframe suggest a bullishness in price, as the 20 and 50 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend. The weekly chart below shows GBPCAD’s price action over the past year.
Monthly outlook: choppy. Clear trends not visible on the 24, 60 and 120 month 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.
Given that we see an uptrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
It should be noted, though, the 20 and 200 day simple moving averages turned downwards, which may be a bearish sign.
The closest is the 100 day average, which is 6.7 pips away.
The closest is the 20 day average, which is 20.7 pips away.
The closest is the 20 day average, which is 5.7 pips away.
Given that we see downtrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
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.
As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern.
Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down.