GBP/CAD Currency Pair Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Weaker technical forecast for GBP/CAD as currency pair downgraded to Sell Candidate.
(Updated on Jun 26, 2024)
The GBP/CAD currency pair price fell by -0.203% on the last day (Wednesday, 26th Jun 2024) from $1.73 to $1.73. During the last trading day the currency pair fluctuated 0.317% from a day low at $1.73 to a day high of $1.73. The price has fallen in 6 of the last 10 days and is down by -1.37% for this period. Volume has increased on the last day by 21 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 175 thousand shares were bought and sold for approximately $303.18 thousand.
The currency pair lies in the middle of a narrow and weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the currency pair is expected to rise 2.56% during the next 3 months and, with a 90% probability hold a price between $1.76 and $1.80 at the end of this 3-month period.
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GBPCAD Signals & Forecast
There are few to no technical positive signals at the moment. The GBP/CAD currency pair holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $1.73 and $1.74. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, June 13, 2024, and so far it has fallen -1.41%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). GBP/CAD gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs". The currency pair had a Golden Star Signal on Friday, April 26, 2024 in the short-term chart.
Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the currency pair in question.
Golden Star
The currency pair had a Golden Star Signal on Friday, April 26, 2024 in the short-term chart.Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the currency pair in question.
Support, Risk & Stop-loss for GBP/CAD currency pair
GBP/CAD finds support from accumulated volume at $1.72 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved $0.0055 between high and low, or 0.317%. For the last week the currency pair has had daily average volatility of 0.366%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (GBPCAD) For The Upcoming Trading Day Of Thursday 27th
For the upcoming trading day on Thursday, 27th we expect GBP/CAD to open at $1.73, and during the day (based on 14 day Average True Range), to move between $1.72 and $1.74, which gives a possible trading interval of +/-$0.0057 (+/-0.33%) up or down from last closing price. If GBP/CAD takes out the full calculated possible swing range there will be an estimated 0.66% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $1.74 (0.75%) than the support at $1.72 (0.78%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is GBP/CAD currency pair A Buy?
The GBP/CAD currency pair holds several negative signals and despite the positive trend, we believe GBP/CAD will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this currency pair. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this currency pair since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -2.363 Sell Candidate Downgraded
Predicted Opening Price for GBP/CAD of Thursday, June 27, 2024
Fair opening price June 27, 2024 | Current price |
---|---|
$1.73 ( 0.0499%) | $1.73 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for GBPCAD
Fibonacci Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 1.74 | 0.366% |
R2 | 1.73 | 0.245% |
R1 | 1.73 | 0.171% |
Price | 1.73 | |
S1 | 1.73 | -0.0709% |
S2 | 1.73 | -0.146% |
S3 | 1.72 | -0.266% |
Accumulated Volume Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 1.75 | 1.43% |
R2 | 1.75 | 1.25% |
R1 | 1.74 | 0.747% |
Price | 1.73 | |
S1 | 1.72 | -0.781% |
S2 | 1.71 | -1.07% |
S3 | 1.70 | -1.76% |
FAQ
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