Trade of the Day: GBP/CAD
By: Dima Chernovolov
GBP/CAD continues to rise inside the daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which reflects the below-average Initial Trend and Uniformity (4 bars) and strong Clarity (8 bars). GBP/CAD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily GBP/CAD chart below – the pair earlier broke the resistance zone located between the resistance 1,7180 (which has been reversing the price from June) and the 50% Fibonacci correction of the previous downward impulse from the start of May. This price zone is acting as the support area after it was broken. The proximity of this support area and the strength of the active daily impulse increase the probability GBP/CAD will continue to rise inside this Up Channel.