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GBP CAD Technical Analysis - GBP CAD Trading: 2022-08-02
GBP/CAD Technical Analysis Summary
Above 1.577
Buy Stop
Below 1.533
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Buy |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
GBP/CAD Chart Analysis
GBP/CAD Technical Analysis
The GBPCAD: D1 has breached above the downtrend channel. A number of technical analysis indicators formed signals for further advance. We do not rule out a bullish movement if GBPCAD: D1 rises above the upper Bollinger band at 1.577. This level can be used as an entry point for an order to buy. The stop loss can be placed below the Parabolic SAR, the last fractal low and the minimum hit in April 2013 at 1.533. After placing a pending order, the stop loss is to be moved following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price meets the stop loss level (1.533) without activating the order (1.577), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex - GBP/CAD
Investors are expecting the Bank of England (BoE) will hike interest rates. Will the GBPCAD price advance continue?
Bank of England (BoE) next meeting is on August 4. Investors are expecting interest rates will be hiked to 1.75% from 1.25%. That will have a positive effect on Pound. And the main negative effect for the Canadian dollar may be the risk of slowing of monetary policy tightening by Bank of Canada in case the unemployment rises in July. It should rise to 5% from 4.9% according to forecasts. The data will be published on August 5. The worsening of the labor market situation may lower the likelihood of further rate hikes by the Bank of Canada (2.5%). Lately it raised rates together with the Federal Reserve (at 2.5% too). But the US unemployment is noticeably lower and the situation may change. US labor market data for July will be published on the same day together with Canada – on August 5. The US unemployment is expected to remain steady compared to June at 3.6%.
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