Daily Forex Update: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the uniform Rising Wedge pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist measures the Quality of this Rising Wedge at the 4 bar level – which is the result of the slow Initial Trend (one bar), above-average Uniformity (6 bars), and lower Clarity (4 bars). GBP/CAD is expected to continue to rise inside this Rising Wedge – continuing the earlier breakout of the resistance zone described below.

As can be seen from the daily GBP/CAD chart below, this Rising Wedge continues the active daily impulse which earlier broke through the resistance zone lying between the key resistance level 1.7500, 50% Fibonacci correction of the downward impulse from last May and the resistance trendline of the daily up channel from January. The breakout of this resistance zone accelerated the active daily impulse wave. The strength of this impulse adds to the probability GBP/CAD will continue to rise inside this Rising Wedge.

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