Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to fall toward the key support level 1.5481, which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five previous price reversals from this price level. GBP/CAD is expected to continue to fall toward the support level 1.5481.

As can be seen from the daily GBP/CAD chart below – the pair earlier reversed down from the resistance area located between the key resistance level 1.5700, upper daily Bollinger Band and the 50% Fibonacci correction of the upward impulse June. The proximity of this resistance area and the clear daily downtrend increase the probability GBP/CAD will continue to fall toward the support level 1.5481.