Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the daily Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 3-bar level – which is the result of the slow Initial Trend (3 bars) and above-average Uniformity (7 bars). GBP/CAD is expected to rise further inside this Triangle.

As can be seen from the daily GBP/CAD chart below – the pair earlier broke the resistance zone lying between the key resistance level 1.7135 and the 50% Fibonacci correction of the previous sharp downer impulse from the start of January. 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 Triangle.