GBPCAD pushes through Tuesday's high
British Pound/Canadian Dollar (GBPCAD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPCAD ended Wednesday at 1.7089 gaining 93 pips (0.55%). Closing above Tuesday's high at 1.7011, the currency confirmed its breakout through the previous session high after trading up to 127 pips above it intraday.
Daily Candlestick Chart (GBPCAD as at Sep 16, 2020):
Wednesday's trading range has been 168 pips (0.99%), that's above the last trading month's daily average range of 143 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GBPCAD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1.7026 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 1.7160 (R1).
The pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for GBP/CAD. Out of 152 times, GBPCAD closed lower 62.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.26% with an average market move of -0.22%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more