Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the key support level 1.6944 which was previously identified by Autochartist on the daily charts. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five previous price reversals from this price level. GBP/CAD is expected to continue to fall toward the forecast price 1.6878.

As can be seen from the daily GBP/CAD chart below – the price earlier reversed down from the strong resistance area located between the pivotal resistance level 1.7075 (which has been reversing the pair from October), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from September. The proximity of this resistance area increases the probability GBP/CAD will continue to fall toward the forecast price 1.6878.