Trade of the Day: GBP/CAD
By: Dima Chernovolov
GBP/CAD continues to fall inside the clear 30-minute Down Channel which was recently identified by Autochartist. Autochartist rates the quality of daily this Down Channel at the 7-bar level – which is the result of the medium Initial Trend (6 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). GBP/CAD is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support area shown below.
As can be seen from the daily GBP/CAD below, the price earlier broke the support area lying between the support level 1.7400 (which has been reversing the price from March), support trendline of the daily up channel from December and the 50% Fibonacci correction of the previous upward impulse from February/ This price zone is acting as a resistance zone after it was broken. The proximity of this resistance area increases the probability GBP/CAD will continue to fall inside this GBP/CAD Channel.
