Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the hourly Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the above-average Initial Trend (6 bars), higher Uniformity (7 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 broke the key resistance level 1.7180 intersecting with the 61.8% Fibonacci correction of the earlier sharp downward impulse from September. This price area is acting as the support zone after it was broken. The proximity of this support zone increases the probability GBP/CAD will continue to rise inside this Up Channel.