GBPCAD Bullish

Analysis Price: 1.8567 (Updated: 17 May 2025, 13:36 UTC)

Comprehensive analysis for GBPCAD showing predominantly bullish sentiment with 85% of traders in long positions. Market structure, technical patterns, and key levels examined across multiple timeframes.

Select Currency Pair

Signal Overview

Bullish High Confidence Low Risk

Market Consensus:

85% Long

15% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a high confidence bullish bias for GBPCAD (signal strength: 69%). Supporting factors include: High probability (95%) support zone detected at 1.8563; Technical patterns identified: Bullish Engulfing (H4). Contradicting factors: Retail sentiment is 66% bearish. Risk assessment for this trade is low. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

LONG SHORT

34% 66%

Historical Sentiment (7 Days)

Sentiment Interpretation

Bearish sentiment with 66% of traders holding short positions. The market has a negative bias, but watch for signs of exhaustion if this percentage increases further.

Support & Resistance Analysis

Resistance Levels

R1: 1.8600 0.18% ↑

Analysis Price: 1.8567

Support Levels

S1: 1.8405 0.87% ↓

Market Regime:

Uptrend

Analyst Bias:

Unknown

Direction Probability:

65%

Price Position Analysis

Price is currently near resistance at 1.8600 (0.18% above analysis price) with support at 1.8405 (0.87% below). This position near resistance could present a potential selling opportunity with a favorable risk-reward ratio.

Chart Pattern Analysis

59%

Bullish Engulfing

Reliability:

59%

Detected: May 16, 12:25

Pattern Analysis Interpretation

Predominantly bullish patterns detected across timeframes, suggesting upward momentum. The most reliable pattern is a bullish Bullish Engulfing on the H4 timeframe with 59% historical reliability. This pattern is currently only confirmed on the H4 timeframe.

High Probability Zones

Support Zone

95%

Zone Level:

1.8563

analysis price:

1.8567

Distance:

0.02%

Confluence Factors:

Hammer 24% Retracement Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

Support Zone

95%

Zone Level:

1.8563

analysis price:

1.8567

Distance:

0.02%

Confluence Factors:

Inverse Head and Shoulders 24% Retracement

Valid on Timeframes:

H1 H4 D1 W1

Support Zone

82%

Zone Level:

1.7909

analysis price:

1.8567

Distance:

3.54%

Confluence Factors:

Double Bottom 162% Extension

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

Price is extremely close to a high probability (95%) support zone at 1.8563. This presents a potential buying opportunity with stop loss slightly below the zone. Multiple confluence factors strengthen this level's significance.

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):

28.0

Volatility Regime:

Low

Volatility Level:

10-Day ATR Trend

Volatility Interpretation (H1)

GBPCAD is exhibiting low volatility (8 percentile) with an expected daily range of just 28.0 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

GBPUSD

0.90

GBPAUD

0.90

USDCAD

0.89

AUDCAD

0.77

EURGBP

-0.75

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: GBPUSD, GBPAUD, USDCAD, AUDCAD. 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: EURGBP. 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

0.35

Strong

CAD

0.38

Strong

Relative Strength:

-0.03

Neutral Bias

Currency Strength Interpretation (M15)

GBP and CAD show similar strength levels on the M15 timeframe, with a relative strength of -0.03. This indicates a neutral bias for GBPCAD and suggests range-bound trading conditions may be more likely.

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.