Daily Forex Update: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the daily Ascending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 4-bar level – which is the result of the slow Initial Trend (3 bars), lower Uniformity (2 bars) and significant Clarity (7 bars). GBP/CAD is expected to rise further inside this Ascending Triangle – in line with the earlier breakout of key resistance area shown below.

As can be seen from the daily GBP/CAD below, the pair previously broke the key resistance area lying between the resistance level 1.7250 (which has been reversing the price from the start of February) and the 50% Fibonacci correction of the previous downward impulse 1. This price area is acting as strong support area after it was broken. The proximity of this support area increases the probability daily GBP/CAD will continue rise inside this Ascending Triangle.