GBP/CAD analysis for April 28, 2021

Looking at the chart on the four-hour time frame, we see that the pound is in pullback with reaching levels at 1.78862. Then we see a pull below the moving averages and the tendency to go down much lower on the chart. The GBP/CAD pair is currently testing the Fibonacci 61.8% level at 1.71950, and now there is a chance that we will pass that level because we have already tested it three times. If a break occurs easily, the GBP/CAD pair can be seen at 1.70000 at 78.6% Fibonacci level. While for the bullish option, we need to first break above the moving averages and break above 50.0% Fibonacci levels to have a better signal to continue towards the upper targets on the chart. Looking at the MACD indicator, we see that the signal is pure bearish with a tendency to continue in the coming period.

On the daily time frame, we see the GBP/CAD pair testing a zone around 1.71500 with a high probability of going down to the psychological 1.70000. The moving averages on the upper side put pressure on the GBP/CAD pair directing it to the bearish side. For the potential bullish option, we need a rejection from this level and a transition above moving averages and above 23.6% Fibonacci levels to 1.73200. Looking at the MACD indicator, we see that the pure bearish signal, and based on that, we can assume that the bearish scenario is not over yet.

We see that the GBP/CAD pair still moves sideways between the two zones, resistance, and support on the weekly time frame. We are now at the center of that channel, testing currently moving averages. As things stand on the chart, we will probably see the bearish scenario in the coming period. Looking at the MACD indicator, we see a pure bearish signal with a high probability that it will continue in the future.

From the news for the GBP/CAD currency pair, we can single out the following:

Prices of stores in the UK continued to fall in April, data from the British Retail Consortium showed on Wednesday. The store price index fell 1.3 percent year-on-year in April, after falling 2.4 percent in March. In the months ahead, retailers will have to deal with cost pressures due to bureaucratic administration, rising delivery costs due to international supply problems, and rising world food and oil prices, said Helen Dickinson, executive director at BRC. We have a Core Retail Sales report that was better than expected for the Canadian dollar and can only push the pound into an even bigger bearish trend.