By: Dima Chernovolov
GBP/CAD continues to rise inside the 15-minute Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 7-bar level – which is the result of the above-average Initial Trend and Clarity (6 bars) and strong Uniformity (8 bars). GBP/CAD is expected to rise further inside this Rising Wedge – in line with the recent upward reversal form the support area shown below.
As can be seen from the daily GBP/CAD chart below – the price earlier reversed up from the support area lying between the support level 1.7200 (which has been reversing the price from the start of January), lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from December. The proximity of this support zone increases the probability GBP/CAD will continue to rise inside this Rising Wedge.