Daily Forex Update: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the uniform Up Channel chart pattern which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (one bar), significant Uniformity (8 bars) and lower Clarity (two bars). GBP/CAD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance zone shown below.

As can be seen from the daily GBP/CAD chart below, the price earlier broke the resistance zone lying between the round resistance level 1.8000 (which stopped the previous minor impulse wave 3) and the resistance trendline of the daily Rising Wedge from last December. This price area is acting as support zone after it was broken. The proximity of this support zone increases the probability GBP/CAD will continue to rise inside this Up Channel.

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