Daily Forex Update: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the high Quality Pennant chart pattern – that was previously identified by Autochartist on the daily charts. The overall Quality of this Pennant is measured by Autochartist at the 9-bar level – which reflects the sharp Initial Trend (10 bars), significant Uniformity and Clarity (both rated at the 8-bar level). The strength of this Pennant breakout is rated by Autochartist at the 10-bar level. USD/CAD is expected to fall to the Forecast Price 1.6791.

The breakout of this Pennant is a “Continuation” chart pattern – meaning it is aligned with the prevailing downtrend that can be seen on the daily GBP/CAD charts.  The top of this Pennant formed when the pair reversed down from the resistance zone lying between the pivotal resistance level 1.7500 (top of earlier correction from August), upper daily Bollinger band and the 38.2% Fibonacci correction of the downward impulse from June.

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