GBPCAD Neutral

Analysis Price: 1.8725 (Updated: 17 August 2025, 12:47 UTC)

Comprehensive analysis for GBPCAD showing neutral market bias. Market structure, technical patterns, and key levels examined across multiple timeframes.

Select Currency Pair

Signal Overview

Neutral Low Confidence High Risk

Market Consensus:

47% Long

53% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a neutral outlook for GBPCAD. Contradicting factors: GBP is showing relative strength against CAD (diff: 38%); Retail sentiment is 75% bearish. Risk assessment for this trade is high.

Sentiment Analysis

Note: The sentiment chart below shows actual trader positioning data (25% long / 75% short). The overall neutral bias (53%) mentioned in the page header represents our analytical consensus based on combined technical factors beyond raw sentiment.

LONG SHORT

25% 75%

Historical Sentiment (7 Days)

Sentiment Interpretation

Extremely bearish sentiment with 75% of traders holding short positions. This extreme positioning could indicate a potential contrarian long opportunity as the market may be oversold.

Support & Resistance Analysis

Resistance Levels

R1: 1.8738 0.07% ↑

Analysis Price: 1.8725

Support Levels

S1: 1.8667 0.31% ↓

Market Regime:

Uptrend

Analyst Bias:

Unknown

Direction Probability:

75%

Price Position Analysis

Price is currently near resistance at 1.8738 (0.07% above analysis price) with support at 1.8667 (0.31% below). This position near resistance could present a potential selling opportunity with a favorable risk-reward ratio.

Chart Pattern Analysis

80%

Ascending Triangle

Reliability:

80%

Detected: Aug 16, 20:51

Pattern Analysis Interpretation

Predominantly bullish patterns detected across timeframes, suggesting upward momentum. The most reliable pattern is a bullish Ascending Triangle on the H1 timeframe with 80% historical reliability. This pattern is currently only confirmed on the H1 timeframe.

High Probability Zones

Support Zone

95%

Zone Level:

1.8457

analysis price:

1.8725

Distance:

1.43%

Confluence Factors:

Double Bottom 62% Retracement

Valid on Timeframes:

H1 H4 D1 W1

Support Zone

75%

Zone Level:

1.7549

analysis price:

1.8725

Distance:

6.28%

Confluence Factors:

Hammer 162% Extension

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

Price is approaching a high probability (95%) support zone at 1.8457, currently 1.43% away. Consider preparing a buy strategy as price approaches this level, watching for confirmation signals.

Multiple high probability zones exist for this pair, indicating a well-structured technical environment with clear levels for trading decisions.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

34.0

Volatility Regime:

Low

Volatility Level:

10-Day ATR Trend

Volatility Interpretation (H1)

GBPCAD is exhibiting low volatility (7 percentile) with an expected daily range of just 34.0 pips. This reduced movement typically indicates consolidation or indecision in the market. Consider tighter stop losses but be aware that breakout potential increases after periods of low volatility.

Correlation Analysis

Top Correlations with GBPCAD

CADCHF

-0.90

GBPCHF

0.88

AUDCAD

0.87

GBPAUD

0.84

CADJPY

-0.84

Correlation Interpretation

Understanding how GBPCAD correlates with other pairs can help with portfolio diversification and risk management. Strong positive correlations (above 0.7) indicate pairs that move similarly, while strong negative correlations (below -0.7) show pairs that typically move in opposite directions.

GBPCAD shows strong positive correlation with: GBPCHF, AUDCAD, GBPAUD. This means these pairs tend to move in the same direction. Trading in the same direction on multiple correlated pairs increases portfolio risk, while finding divergences between correlated pairs can highlight potential reversal opportunities.

GBPCAD shows strong negative correlation with: CADCHF, CADJPY. This means these pairs tend to move in opposite directions. Negatively correlated pairs can be useful for hedging strategies or to confirm signals (a buy signal in one pair would be supported by a sell signal in the negatively correlated pair).

Currency Strength Analysis

Select Timeframe:

GBP

-0.43

Weak

CAD

0.38

Strong

Relative Strength:

-0.81

Bearish Bias

Currency Strength Interpretation (M15)

CAD is significantly stronger than GBP on the M15 timeframe, with a relative strength of -0.81. This suggests a strong bearish bias for GBPCAD. With CAD showing absolute strength and GBP showing absolute weakness, this is an ideal scenario for a short position.

How to Use This Analysis

This comprehensive analysis provides multiple perspectives on GBPCAD to help inform your trading decisions:

Sentiment Analysis: Use to understand market positioning and potential contrarian opportunities
Support & Resistance: Identify key price levels for setting stop losses and take profits
Pattern Analysis: Recognize technical formations that may indicate continuation or reversal
Volatility Analysis: Adjust position sizing and risk management based on current market conditions
Currency Strength: Compare the relative performance of individual currencies within the pair
Correlation Analysis: Understand how this pair moves in relation to others for portfolio diversification

For optimal results, consider how these different factors align. The strongest trading opportunities typically occur when multiple analytical tools show confirmation across different timeframes.