GBP/CAD Is Bullish Now as Technical Price Action Shows Longs

GBP/CAD Technical Analysis

  • Bullish SHS on Daily TF
  • Breakout is expected
  • Positional entry has been established
  • M H5/ Q H3 are targets


  1. Left shoulder
  2. Head
  3. Right shoulder
  4. Entry
  5. Target

GBP/CAD is turning bullish and we can see that marubozu candlestick has been printed out. If the market remains bullish, we should secure profits around 1.7100 zone as continuation is expected but its a strong resistance. The market has also made a bullish SHS pattern at the bottom and we should see a steady move up. Any move and close above 1.7025 should see the GBP/CAD moving further up. Watch for a potential breakout of the bullish SHS pattern towards the target zone.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,



New Zealand Dollar end The Bearish Correction

The NZDUSD is in a false bearish breakout from the falling wedge pattern. That is possibly a very nice buying opportunity.

The GBPNZD is testing the combination of three important dynamic supports. A breakout can be an amazing sell signal.

The EURJPY broke the upper line of the wedge and is aiming higher with a buy signal.

The GBPCAD is in a giant symmetric triangle on the weekly chart. We will probably have to wait a long time till until the breakout but it will most probably be worth it.

The NZDJPY is in a flag formation. A breakout of its upper line will bring the positive sentiment back.

The GBPJPY is forming a head and shoulders pattern inside of the symmetric triangle pattern. A breakout of the lower line (and the neckline at the same time) can be a good bearish signal and a breakout to the upside can be a signal to go long.

For a look at all of today’s economic events, check out our economic calendar.

Canadian Dollar Reverses the Losses From the Last Week

Global indices continue the reversal. Asian stocks started the week off on the front foot and the rest of the world is about to follow.

SP500 is aiming for new all-time highs. Most probably, buyers will succeed.

DAX is defending the crucial horizontal support on the 15800 points.

Gold ends last week’s correction and breaks the upper line of the flag, aiming north.

The EURUSD is still inside of the wedge pattern with a negative sentiment.

The USDCAD is aiming lower after the bounce from the 38,2% Fibonacci. Sentiment is back to negative.

The GBPCAD is showing us the beauty of the false breakout pattern. The sentiment is bearish.

The EURCAD fails to break the neckline of the iH&S formation.

The CADJPY shows strength by bouncing from the neckline and the 38,2% Fibonacci.

For a look at all of today’s economic events, check out our economic calendar.

GBP/CAD Bearish Move Could Restart

The GBP/CAD is having a retracement. A temporary low close to D L5 camarilla has been formed.

If the market retraces, we should see a move towards 1-2-3 entry at the POC zone which is 1.7282-1.7295. The POC zone should give us a rejection towards lower levels on camarilla. Targets are 0.7230 and 0.7175. However, first we should see a move up then a drop. The market is retracing now as a part of profit taking and this market is generally bearish.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,



GBP/JPY Vs GBP/USD and USD/JPY – March 6th, 2021

GBP/USD last week fell 236 pips from 1.4015 to 1.3776 while overbought GBP/JPY rose 257 pips from 148.14 to 150.71.

Known since the 1930’s, the Japanese pegged GBP/JPY to UK Gold for not only economic viability but the first incursion to the western world of finance. The standard to hold GBP/JPY to the UK held throughout Bretton Woods. Upon the 1972 free float, GBP/JPY became attached permanently with high +90% correlations to GBP/USD.

All JPY cross pairs followed with high and positive correlations as AUD/USD and AUD/JPY, NZD/USD and NZD/JPY, EUR/USD and EUR/JPY while USD/CAD and CAD/JPY became polar opposites as both permanently correlate negatively. USD/CHF and CHF/JPY traditionally also hold opposite correlations.

The Japanese offered not only a double trade but GBP/JPY and GBP/USD as the same exact currency pairs. The same principle holds true for EUR/JPY and EUR/USD, AUD/USD and AUD/JPY and NZD/USD and NZD/JPY. The double trade is permanent for USD/CAD and CAD/JPY.

Why JPY cross pairs remain overbought into week 6 amd not falling with counterpart currencies is the USD/JPY problem to correlations. While GBP/USD correctly correlates to GBP/JPY at +94%, GBP/JPY also not correctly correlates to USD/JPY at +83%. A further problem exists as GBP/USD correlates to USD/JPY at +46 %. All correlations are not only running positive but this situation is the exact same for AUD/JPY, NZD/JPY, EUR/JPY, CAD/JPY and explains why prices remain high and overbought.

Positive correlations are the result of exchange rate prices and relationships to moving averages since correlations are found within the context of averages. USD/JPY trades above vital 105.70,  GBP/USD above 1.3697 and GBP/JPY above 144.80. Correlations are positive because prices trade above respective high / low averages.

Required to assist GBP/JPY to drop is GBP/USD breaks 1.3697 or USD/JPY trades below 105.70. GBP/JPY then decides to fully correlate to USD/JPY or GBP/USD. GBP/JPY in every instant follows GBP/USD as the 91 year correlation and order of currency markets.

Current GBP/JPY trades 1156 pips above GBP/USD and 2506 pips below GBP/CAD. GBP/JPY larger range from GBP/USD becomes 144.08 and 1.5564. GBP/JPY above is located the 14 year average at 155.38 and the 10 year at 148.36.

Prior to the 2016 interest rate changes by the central banks, the market order to currency pair arrangement existed as GBP/USD, GBP/JPY, GBP/CHF then GBP/CAD.

The new order is arranged as GBP/CHF, GBP/USD, GBP/JPY then GBP/CAD and seen as GBP/CHF 1.2855, GBP/USD 1.3820, GBP/JPY 149.86 or 1.4986 then GBP/CAD 1.7292. Much daylight exists for GBP/JPY to trade freely between GBP/USD and GBP/CAD yet 250 pips traded last week from a distance of 1100 and 2500 pips between exchange rates.

Why GBP/CHF and all currency  pairs arranged as Other Currency / CHF dropped from contention as support is due to the uniqueness to the SNB’s interest rate system. Libor is miles from actual interest rates as first comes Saron, Call Money rates and the most vital Debt Register Claims.

JPY cross pairs overall contain downside moves from GBP/JPY at 300 pips and 200 for AUD/JPY and NZD/JPY.

USD/JPY for the week is not only light years overbought but the 5 year average is located at 109.01. A good target is found at 106.65.

GBP/JPY big break lower is located at the 10 year average at 148.38. A break then GBP/JPY trades 146.00’s easily.

GBP/USD this week opens between 1.3768 and 1.3840. Below 1.3768 challenges most vital 1.3697, above 1.3840 then GBP/USD travels much higher.

GBP/CHF and GBP/CAD run good and positive correlations at +93% and +96 % for GBP/CAD. For GBP/NZD and GBP/AUD remain problems as correlations run negative at -43% and -64% for GBP/AUD.


Included are GBP/JPY moving averages from 5 day to 253 days. The averages are perfect and derived from the ECB. The first number is the day average followed by trading days then the average.

A 20 day average is actually 15 days, a 50 day average is actually 36 days. Trading day averages to factor perfectly start at the beginning of every year then the numbers increase as days trade. A 50 day average is most stable as it only trades 36 to 50 days.

A 5 day average begins Monday at 2 days, then 3 for Tuesday and Wednesday and 4 for Thursday. A full 5 day average only trades on Fridays.

5 Day     5             149.2391

10 Day  9             149.1325

20 Day  15           148.3808

50 Day  36           145.2691

100 Day               71           142.5398

200 Day               143       139.9417

253 Day               180       139.1231

As GBP/JPY trades lower then the averages drop.


Targets are not only known miles ahead but targets stack to watch trades unfold.

Current targets: 149.7549, 149.8496, 149.5086, 148.1852, 146.0887, 143.7901, 143.0356.

The ECB and most central banks factor exchange rates to 6 decimal places and 4 for USD/JPY and JPY cross pairs and I follow the ECB exactly.

GBP/CAD Sellers are Waiting in the Ambush

The GBP/CAD is having a retracement. The price is getting close to overbought levels and we could see a drop soon.

As the price progresses towards the 88.6 and the trading zone we could see some momentum on an intraday basis. 1.7605-7625 is the zone where I will be looking to sell, provided that the price slowly grinds towards the POC. Targets are 1.7538 followed by 1.7449 and 1.7405. Only a clear breakout above 1.7655 will make this scenario invalid.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,



Thursday On Indices Brings Us a Correction

Seems that Thursday will be a correction day on global stock exchanges, which is pretty normal and sellers should not get overly excited about seeing a red color on the screens.

FTSE is getting ready for a bearish correction, probably aiming 38,2% Fibonacci.

CAC is doing pretty much the same.

Gold is defending crucial support on 1850 USD/oz.

Oil is testing the most important support in the past few weeks – 41.3 USD/bbl.

AUDUSD aims lower after creating the Head and Shoulders pattern.

EURUSD goes lower after the false breakout of a dynamic resistance.

EURAUD tests and bounces from the lower line of the long-term range.

USDCAD bounces from the long-term horizontal support.

CHFJPY – two safe haven currencies locked inside of the symmetric triangle pattern.

GBPCAD with exactly the same situation.

For a look at all of today’s economic events, check out our economic calendar.

GBP/CAD Might Bounce off W L4 Due to Over-Sold Condition

The GBP/CAD is supported within the POC zone. The price is showing oversold conditions and we might see the bounce.

The pair needs to stay above 1.7200 for buyers to take over. Both GBP and CAD are weak, so the question now is which one is stronger. We could see a move up to the trend line 1.7330 and from there a drop lower. Have in mind that the price is effectively in downtrend so the upmove is actually a counter trend move (retracement). Due to over-sold conditions we should see a bounce up as we also have a confluence of D L3 and W L4.

The Analysis has been done with the CAMMACD.Core

For a look at all of today’s economic events, check out our economic calendar.


GBP/CAD Possible Drop Off the W H3

Then GBPCAD has formed a possible rejection pattern off the Camarilla W H3 pivot. We could see a drop.

Overbought conditions along with the change in momentum have made the pair look more bearish. 1.6900 zone could reject the price down to W L3 pivot. W L3 is 1.6820. Only a close above 1.6940 could make the price go higher towards 1.6921 where the trend line is. At this point sellers are slowly regaining control but it’s the NFP Monday so be careful.

The Analysis has been done with the CAMMACD.Core and Sit Systems

For a look at all of today’s economic events, check out our economic calendar.

GBP/CAD Technical Analysis: Yesterday’s Low is Broken

Dear Traders,

The GBP/CAD is still bearish. The pair has broken yesterday’s lows before spiking higher. The GBP was bought early in the morning session.

We need to have in mind that the deadline for extending the Brexit transition period is on 30 June. This bounce is contributed to a sort of optimism but all GBP crosses have a headline risk now. At this point I still see the CAD stronger than GBP. Yesterday’s lows have been broken and the price is rejecting THU highs. We should expect a bearish continuation towards 1.6880.

The Analysis has been done with the CAMMACD.Core and Sit Systems

For a look at all of today’s economic events, check out our economic calendar.


GBP/CAD Technical Analysis: Retracement in Progress

Dear Traders,

The GBP/CAD had formed a potential retracement above W L3 support, which is in confluence with M L5 camarilla support. The price should go up.

At this point we can also see a small inverted head and shoulders pattern which indicates bullish pressure. For a continuation to the upside, the pair needs to close above W H3 camarilla pivot – 1.7075. A close above that level will give additional bullish impulse to the price and we should see 1.7117 and eventually 1.7186.

The Analysis has been done with the CAMMACD.Core and Sit Systems

For a look at all of today’s economic events, check out our economic calendar.


GBP/CAD Bearish Channel Still in Play

Dear Traders,

The GBP/CAD is bearish. However, the GBP has recovered a bit and bears need to keep the price below 1.7105.

If bears manage to keep the price below the ATR projected high, we might see another leg down. The POC zone is 1.7050-60 and rejections off that zone should bring the price down. We can see that the market is still following the zig-zag pattern and we should see a drop. Targets are 1.7020, 1.6990 and 1.6960. Only a move above 1.7105 will be a potential trend change in the pair.

The Analysis has been done with the CAMMACD.Core and Sit Systems


GBP/CAD Uptrend Much Stronger Above 1.7600

Dear Traders,

The GBP/CAD has come to the support and the price might be bouncing above the POC zone. The further move up will be stronger above 1.7600.

Chaotic market movements might have been caused by end month flows and fixing. Bounces close to 200 pips within different markets have been spotted. The GBP/CAD has formed a bullish bounce at the POC zone and the price should move up. If we see a new candle close above 1.7600, then the next target is 1.7646, followed by 1.7690 and 1.7716. A move below 1.7530 will invalidate this bullish scenario.

The Analysis has been done with the CAMMACD.Core and Sit Systems


GBP/CAD Bullish Move as Long as the Price is Above 1.7200

Dear Traders,

The GBP/CAD is still in uptrend. If the market stays above 1.7200 we can expect uptrend continuation.

A strong 4h close above 1.7200-1.7223 will make a decisive move forward towards higher targets. Until that happens, the trend is still bullish but the price might drop. The best scenario is a close above W H3 pivot – 1.7223 and then we shouldsee a move towards 1.7250 and 1.7323. As long as the price hovers below 1.7200, we might see another drop lower.

The Analysis has been done with the CAMMACD.Core and Sit Systems


GBP/CAD Last Line of Defense for Bulls

1.7230-80 is the POC zone. 4h close above the zone suggests a bullish bounce towards 1.7390 and eventually 1.7455. A close below the zone will be bearish and the price should go to 1.7225, 1.7191 amd 1.7136. The final target is 1.7047. These targets are intra-week targets and we might see some of them hit today.

The analysis has been done with the CAMMACD.MTF template.

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Many green pips,
Nenad Kerkez aka Tarantula FX
Elite CurrenSea

GBP/CAD is Insatiable

This week the price is above the 100- and 200-week MAs at 1.71 and 1.7155 respectively. The weekly candlestick hasn’t closed yet, so there are reasons to worry that the breakout to the upside is a false one.

At the same time, there’s still some space on the upside until GBP/CAD hits the next major resistance: there’s a 100-month MA at 1.7285 and the 78.6% Fibo retracement of the May-August decline at 1.7335. These levels may attract the market. As a result, short-term buying with there targets looks possible. It will be necessary to be careful, though, when the price reaches the resistance and consider selling if signals from price action like pin bars arrive at this point.

This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments.

The views and ideas shared in this article are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the article may be subject to change without prior notice.

Sterling Lower Ahead of BoE Super Thursday, Dollar Rallies

The story defining the Pound’s steep depreciation in recent days continues to revolve around Brexit-related uncertainty and a broadly stronger US Dollar.

Much attention will be directed towards the Bank of England policy meeting which should offer fresh insight into the health of the UK economy. It’s widely expected that UK interest rates will probably be left unchanged today, attention will be directed towards the language of the policy statement, inflation forecast and whether there is split in the MPC vote.

The Sterling still appears heavily depressed but could be thrown a lifeline, if the BoE hints a rate hike in 2019 on the condition a soft Brexit or no Brexit at all. Alternatively, buying sentiment towards the Pound is seen taking a major hit if the central bank rules out a hike this year due to the endless uncertainty created by Brexit.

What would be seen as a major threat to the Sterling resuming its painful descent would be if the BoE issues a downbeat policy statement, suggesting a downward revision in growth and inflation forecasts which obstruct the need to raise rates.

Away from the BoE meeting, Theresa May will be flying to Brussels today on a mission to secure further concessions from the EU. With the European Union already making it clear that the withdrawal agreement is “not open for re-negotiations”, it will be interesting to see how her trip plays out. The Pound is seen weakening if she returns back to London empty-handed. However, a rebound could in the cards if expectations start to mount over the government extending Article 50.

Taking a look at the technical picture, the GPUSD is bearish on the daily charts. The current support around 1.2900 could transform into a dynamic resistance that encourages a decline towards 1.2840. If 1.2900 is able to prove reliable support, prices are seen trading back towards 1.3000.

In the currency markets, the Dollar has extended gains against a basket of major currencies this morning. With the currency on a six-day rally streak, bulls have clearly won the battle this week. However, the upside is still likely to face headwinds down the road as markets still expect the Fed to take a pause on rate hikes this year. Focusing on the technical picture, the Dollar Index is seen challenging 96.80 in the near term.

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Technical Checks For USDCAD, GBP, JPY & CHF: 30.01.2019


Following its failure to surpass the 1.3370-75 resistance-region, the USDCAD again aims to test the two-month old support-line of 1.3200. Should the pair slips beneath the 1.3200 mark, the 1.3160 and the 1.3125 are likely following numbers to please sellers before flashing 1.3100 on the chart. On the upside, the 1.3280 can limit the pair’s immediate upside prior to highlighting the 1.3370-75 area. In case prices rally beyond 1.3375, the 1.3425 and the 1.3445 seem buffers during its rise to 1.3485-90 horizontal-resistance.


GBPCAD’s another reversal from 1.7475-90 resistance-zone signal brighter chances of its pullback to the 38.2% Fibonacci retracement level of 1.7285, breaking which 1.7170 and the 200-day SMA level of 1.7125 can grab the limelight. Given the pair’s refrain to respect the 1.7125, the 1.7060 and the 1.7000 may flash on the Bears’ radar. If at all the pair registers a daily closing past-1.7490 then its surge to 1.7580 and to the 1.7665-70 can’t be denied. During the pair’s sustained advances above 1.7670, the 1.7760 and the 1.7800 may attract market attention.


Even if short-term ascending trend-channel portrays the CADJPY strength, the pair needs to overcome the 82.90 horizontal-resistance in order to accelerate its up moves to the 83.40 resistance, including channel’s upper-line. However, the 83.70-80 region and the 84.25 could confine the pair’s north-run past-83.40. Meanwhile, the 82.20 and the channel-support of 82.00 might limit the pair’s adjacent declines, breaking which 81.30 and the 81.00 could come forward as supports. Should the pair continue trading southwards under 81.00, it can target the 80.60 and the 80.00 rest-points.


Observing a month-long ascending trend-line, the CADCHF now runs towards 200-day SMA level of 0.7550 ahead of looking at the 0.7580 and a bit broader resistance-line of 0.7600. Assuming the pair’s successful break of 0.7600, the 0.7680 and the 0.7720 may become Bulls’ favorites. Alternatively, a daily closing beneath the 0.7470 support-line highlights the importance of 50-day SMA level of 0.7420 and the 0.7370 levels. Additionally, the 0.7335 and the 0.7300 may appear as quote if the 0.7370 fall short of restricting the pair’s downside.

Important GBP Pairs’ Technical Outlook: 23.01.2019


Following its gradual recoveries since week-start, the GBPUSD again confronts four-month old resistance-line, around 1.2980, which if broken on a daily closing basis can propel the pair towards another important resistance, namely the joint of 200-day SMA and downward slanting trend-line stretched since June 2018, around 1.3080-90. Given the pair manage to print a D1 close beyond 1.3090, also clears 1.3100 mark, it may aim for 1.3180 & 1.3260 numbers to north. If at all the pair again fails to surpass the trend-line barrier, the 1.2910, the 1.2820 and the 50-day SMA level of 1.2755 could regain market attention before highlighting the 1.2700 mark including immediate support-line. Let’s say sellers fetch the quote under 1.2700 then the 1.2615 & 1.2570 might flash on their radars to target.


GBPJPY also ticked beyond 50-day SMA level of 142.20 but has to provide a daily closing bigger than that to please buyers with 144.00 and the 100-day SMA level of 144.50. However, 200-day SMA level of 145.55 may confine the pair’s rise after 144.50, if not then 146.00 & 146.80 may become optimists favorites. Meanwhile, the 140.90-80 and the 139.90-70 seem adjacent support to watch during the pair’s U-turn ahead of giving importance to 139.00 rest-point. Should prices keep trading southwards below 139.00, the 137.30 & the  135.75 might offer intermediate halts to its drop in direction to 132.35.


In spite of crossing the 1.7310-20 horizontal-region, the GBPCAD could find it hard to extend latest up-moves as an upward slanting trend-line, at 1.7365, adjacent to the 1.7400, might challenge the Bulls. In case the pair refrains to respect the 1.7400 resistance, the 1.7465 and the 1.7500 are likely following levels to appear on the chart. Alternatively, the 1.7250 may act as nearby support for the pair, breaking which lower-line of “Rising Wedge” formation, around 1.7155, can grab the limelight. If the pair slips below 1.7155, it confirms the short-term bearish pattern and could open the gate for a plunge towards 1.7050 & 1.7000 psychological magnet.


With the clear break of ten-month old descending trend-line and 200-day SMA, the GBPCHF may rally to 1.3030 and then to 1.3110 but the 1.3170 and the 1.3265-75 area could play their role of resistances afterwards. Given the pair’s rise above 1.3275, the 1.3390 and the 1.3450 can be aimed if holding long positions. On the contrary, a D1 close beneath 1.2920 may reprint 1.2875 and the 1.2830 as quotes while 1.2770 could entertain the pessimists then after. During the pair’s decline past-1.2770, the 100-day SMA level of 1.2750 and the 1.2660, including 50-day SMA, might offer rest to the downturn.

Technical Update For GBP/USD, EUR/GBP & GBP/CAD: 04.01.2019


With more than a quarter old support-line pulling the GBPUSD up, 50-day SMA level of 1.2775 is likely to play its role of resistance soon, if not then 1.2900 mark, comprising 100-day SMA, followed by 1.3000 round-figure, may gain buyers’ attention. Should prices rise beyond 1.3000 on a daily closing basis, eight-month long downward slanting TL, at 1.3055, and the 200-day SMA level of 1.3165 seem crucial to watch. Alternatively, the 1.2600, the 1.2570 and the 1.2500 could try limiting the pair’s declines before highlighting the 1.2425 TL support for one more time. In case the quote registers a D1 close under 1.2425, the 61.8% FE level of 1.2380 and the 1.2300 might entertain sellers prior to pleasing them with the 1.2200 & the 1.2120, including 100% FE, numbers to south.


Another failure to sustain an uptick past-0.9060-70 resistance-region presently drags the EURGBP towards ascending trend-line, at 0.8935, which if broken can fetch the pair to 0.8880-75 and 0.8810-0.8800 rest-points. Given the Bears’ refrain to respect the 0.8800 mark, the 0.8770, the 0.8740 and the 0.8690 may flash on their radars. Meanwhile, 0.9030 can serve as immediate resistance for the pair ahead of pushing Bulls to 0.9060-70 area. Though, successful clearance of 0.9070 enables the pair to target the 0.9105 and the 61.8% FE level of 0.9160.


GBPCAD is yet to justify its strength by conquering the 1.7130-40 resistance-zone, until that the pair might be considered weak enough to re-test the 1.6950-45 horizontal-support. If at all 1.6945 fall short of restricting the pair’s dip, the 1.6880, the 1.6775 and the 1.6700 could act as consecutive supports. On the contrary, pair’s ability to cross the 1.7140 barrier can escalate the recovery to 1.7200 and the 1.7270 but the 1.7315-20 may confine its further advances. Assuming the quote’s capacity to surpass 1.7320, the 1.7350, the 1.7400 and the 1.7465 might provide buffers during its rally to 1.7500 landmark.