Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and strong Clarity (8 bars). GBP/CAD is expected to rise further inside this Up Channel.

As can be seen from the daily GBP/CAD chart below – the price earlier reversed up with the daily Hammer from the support area located between the key support level 1.6730 (previous monthly low  from November) and the lower daily Bollinger Band. The proximity of this support area adds to the probability GBP/CAD will continue to rise inside this Up Channel.