By: Dima Chernovolov
GBP/CAD recently broke the Inverse Head and Shoulder chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this chart pattern at the 6-bar level – which is the result of the sharp Initial Trend (10 bars) and average Uniformity (5 bars). GBP/CAD is expected to rise toward the forecast price 1.7179.
As can be seen from the daily GBP/CAD chart below – the pair earlier reversed up from the support area located between the key support level 1.7020 (which has been reversing the price from May) and the lower daily Bollinger Band. The proximity of this support zone adds to the probability GBP/CAD will continue to rise toward the forecast price 1.7179.