Trade of the Day: GBP/CAD
By: Dima Chernovolov
GBP/CAD continues to rise inside the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 4-bar level – which is the result of the strong Initial Trend (10 bars) and lower Uniformity (2 bars). GBP/CAD is expected to rise further inside this Down Channel.
As can be seen from the daily GBP/CAD chart below – the price recently reversed up from the support area located between the support level 1.580 (which stopped the price twice at the start of March) and the lower daily Bollinger Band. The proximity of this support area and the triple bullish divergence on the daily Stochastic increase the probability GBP/CAD will continue to rise inside this Down Channel.