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 6-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). GBP/CAD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily GBP/CAD chart below – the pair earlier down with the daily Shooting Star from the resistance zone lying between the key resistance level 1.7665 (which has been reversing the price from the end of March) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability GBP/CAD will continue to fall inside this Down Channel.