Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise in the direction of the Key Resistance level 1.7146, which was recently identified by Autochartist. Autochartist rates the Significance of this Resistance level at the 4-bar level – which is the result of the 4 previous price reversals from this price level. GBP/CAD is expected to rise further toward this resistance level 1.7146- in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily GBP/CAD chart below, the price earlier reversed up sharply from the support area lying between the support level 1.6900 (former support pivot) and the lower daily Bollinger Band. The proximity of this support area adds to the probability GBP/CAD will continue to rise toward the resistance level 1.7146.