Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the hourly Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Falling Wedge at the 7-bar level – which is the result of the below-average Initial Trend and Uniformity (4 bars) and significant Clarity (8 bars). GBP/CAD is expected to rise toward the forecast price 1.5573.

As can be seen from the daily GBP/CAD chart below – the price earlier reversed up from the support area set between the long-term support level 138.95 (which reversed the pair multiple times from 2010 to 2013) and the lower daily Bollinger Band. The proximity of this support area increases the probability GBP/CAD will continue to rise toward the forecast price 1.5573.