Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the extended 30-minute Triangle chart pattern that was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and lower Clarity (3 bars). GBP/CAD is expected to rise toward the forecast price 1.6784.

As can be seen from the weekly GBP/CAD chart below – the price earlier reversed up from the powerful support area located between the long-term support level 1.6670 (which reversed the price sharply at start of 2020) and the lower weekly Bollinger Band. The proximity of this support area adds to the probability GBP/CAD will continue to rise toward the forecast price 1.6784.