Trade of the Day: GBP/CAD
By: Dima Chernovolov
GBP/CAD continues to rise inside the hourly Up Channel chart pattern which was previously identified 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 and Clarity (6 bars). GBP/CAD is expected to rise further inside this 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 1,7260 (former monthly high from November). This price level is acting as support after it was broken. The proximity of this support level and the strength of the active weekly upward impulse wave increase the probability GBP/CAD will continue to rise inside this Up Channel.