Trade of the Day: GBP/CAD
By: Dima Chernovolov
GBP/CAD continues to rise inside the 4-hour Ascending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 4-bar level – which is the result of the slow Initial Trend (2 bars) and strong low Uniformity (9 bars). GBP/CAD is expected to rise further inside this Ascending Triangle – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily GBP/CAD below, the pair earlier reversed up from the support area lying between the key support level 1.7400 (monthly low from March) and the lower weekly Bollinger Band. The proximity of this support area increases the probability GBP/CAD will continue to rise inside this Ascending Triangle.