By: Dima Chernovolov
GBP/CAD continues to rise inside the uniform 4-hour Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the medium Initial Trend (5 bars), significant Uniformity (8 bars) and near-maximum Clarity (9 bars). GBP/CAD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below
As can be seen from the daily GBP/CAD chart below, the bottom of this Down Channel formed inside the support area lying between the key support level 1.7060 (which stopped the sharp downtrend in May) and lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increase the probability GBP/CAD will continue to rise inside this Down Channel.
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