Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to fall inside the hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (9 bars).  GBP/CAD is expected to fall further inside this Down Channel – in line with the earlier breakout of the support level shown below.

As can be seen from the daily GBP/CAD chart below – the price earlier broke below the key support level 1,6890 (which has been reversing the price from the end of May) – which strengthened the bearish pressure on this currency pair. This price level is acting as the resistance after it was broken. The proximity of this resistance level increase the probability GBP/CAD will continue to fall inside this Down Channel.