Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the key resistance level 1.7014 which was previously identified by Autochartist on the daily charts. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the three previous price reversals from this price level. GBP/CAD is expected to continue to rise toward the forecast price 1.7090.

As can be seen from the daily GBP/CAD chart below – the price earlier reversed up from the powerful support zone located between the long-term support level 1.6900 (which stopped the sharp downtrend in May) and the lower daily Bollinger band. The proximity of this support zone increases the probability GBP/CAD will continue to rise toward the forecast price 1.7090.