Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the daily Up Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and medium Clarity (5 bars). GBP/CAD is expected to rise further inside Up Channel – in line with the earlier breakout of the key resistance level shown below.

As can be seen from the daily GBP/CAD chart below, the price earlier broke through the key resistance level 1.7060 (which stopped the two sharp previous upward impulses in October).  This price levels is acting as the strong support after it was broken. The proximity of this support level increases the probability GBP/CAD will continue to rise inside this Up Channel.