GBPCAD Bearish

Analysis Price: 1.8752 (Updated: 2 July 2025, 03:35 UTC)

Comprehensive analysis for GBPCAD showing a predominantly bearish bias with 68% bearish consensus based on combined analytical factors. Market structure, technical patterns, and key levels examined across multiple timeframes.

Select Currency Pair

Signal Overview

Bearish High Confidence Medium Risk

Market Consensus:

32% Long

68% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a high confidence bearish bias for GBPCAD (signal strength: 36%). Supporting factors include: High probability (95%) resistance zone detected at 1.9; Retail sentiment is 73% bearish; GBP is showing relative weakness against CAD (diff: 31%). Contradicting factors: Technical patterns identified: Inverse Head and Shoulders (D1), Morning Star (H4). Risk assessment for this trade is medium. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

LONG SHORT

27% 73%

Historical Sentiment (7 Days)

Sentiment Interpretation

Bearish sentiment with 73% 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: 1.8832 0.43% ↑

Analysis Price: 1.8752

Support Levels

S1: 1.8679 0.39% ↓

Market Regime:

Range

Analyst Bias:

Unknown

Direction Probability:

60%

Price Position Analysis

Price is between support at 1.8679 (0.39% below analysis price) and resistance at 1.8832 (0.43% above), with slightly closer proximity to support. Watch for bounce confirmation at support or break below.

Chart Pattern Analysis

72%

Inverse Head and Shoulders

Reliability:

72%

Detected: Jul 1, 12:02

63%

Morning Star

Reliability:

63%

Detected: Jul 1, 14:46

Pattern Analysis Interpretation

Predominantly bullish patterns detected across timeframes, suggesting upward momentum. The most reliable pattern is a bullish Inverse Head and Shoulders on the D1 timeframe with 72% historical reliability. Multiple timeframes showing pattern confirmation increases the reliability of the signal.

High Probability Zones

Resistance Zone

95%

Zone Level:

1.9000

analysis price:

1.8752

Distance:

1.32%

Confluence Factors:

Double Top 50% Retracement Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

Price is approaching a high probability (95%) resistance zone at 1.9000, currently 1.32% away. Consider preparing a sell strategy as price approaches this level, watching for confirmation signals.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

59.0

Volatility Regime:

Low

Volatility Level:

10-Day ATR Trend

Volatility Interpretation (H1)

GBPCAD is exhibiting low volatility (9 percentile) with an expected daily range of just 59.0 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

NZDCAD

0.88

CADJPY

-0.83

AUDCAD

0.80

GBPNZD

0.75

GBPJPY

0.72

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: NZDCAD, AUDCAD, GBPNZD, GBPJPY. 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: 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

-0.88

Very-weak

CAD

0.00

Neutral

Relative Strength:

-0.88

Bearish Bias

Currency Strength Interpretation (M15)

CAD is significantly stronger than GBP on the M15 timeframe, with a relative strength of -0.88. This suggests a strong bearish bias for GBPCAD. However, this bias is primarily driven by the weakness of GBP.

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.