May. 7, 2021
While in the midst of a 3 day down trend, losing a total of 0.55%, Today's positive session indicates a possible reversal – hesitant but green: from an earlier low of 1.6877, GBP/CAD is up to 1.697, gaining 92 pips compared to 1.6877 at the start of the day (0.55%).
The GBP/CAD green move comes while some more encouraging signs are out as Canada's Ivey PMI (Apr) released today at 2:00 PM is better than expected at 60.6 but down from preceding data of 72.9 according to new data. United Kingdom Construction PMI fell short of the 62.3 projections, to 61.6 and continued its downward trajectory from the previous figure of 61.7.
At the same time, Canada Employment Change fell short of the -175,000 projections, at -207,100 and continued its downward trajectory from the previous figure of 303,100.
As the day reaches an end, a chart visual study suggests that although GBP/CAD is green today and was as high as 1.7014, it seems to be slowing down slightly and moving away from the 1.7158 resistance line, and is now 188 pips below it. Asset volatility analysis shows that the lower Bollinger band is at 1.6814, indicating further gains might be next. Japanese Candlesticks formations detected today are the "Inverted Hammer”, When it appears on top of a bearish overall trend, as it is now, some traders would consider this as an indication of a reversal, of course.
Overall, the technical analysis suggests GBP/CAD is neutral for the immediate future, with no clear-cut direction.
While GBP/CAD is green so far today, these assets are not doing so well- Singapore Dollar dropped by 0.61%, its largest single-day drop since May 2020. EUR/CAD fell to 1.4649, hitting a 1 year low.