Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise toward the resistance level 1.7198 which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the three previous price reversals from this price level. GBP/CAD is expected to continue to rise toward the resistance level 1.7198.

As can be seen from the daily GBP/CAD chart below – the pair earlier reversed up from the support zone lying between the key support level 1.700, lower daily Bollinger Band and the 50% Fibonacci correction of the upward correction from the start of December .The proximity of this support zone adds to the probability GBP/CAD will continue to rise toward the resistance level 1.7198.