Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the medium Initial Trend (5 bars), lower Clarity (4 bars) and significant Uniformity (7 bars). GBP/CAD is expected to fall toward the forecast price 1.7047.

As can be seen from the daily GBP/CAD chart below – the pair earlier reversed down from the resistance area located between the key resistance level 1.7150 (former monthly support from April), upper dial Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from April. The proximity of this resistance area increases the probability GBP/CAD will continue to fall toward the forecast price 1.7047.