Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the hourly Flag chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Flag at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and significant Clarity (7 bars). GBP/CAD is expected to fall toward the forecast price 1.5246.

As can be seen from the daily GBP/CAD chart below – the pair earlier reversed down from the resistance area located between the resistance level 1.5495 (former support from the start of August), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from April. The proximity of this resistance area, overbought daily Stochastic and the strong daily downtrend add to the probability GBP/CAD will continue to fall toward the forecast price 1.5246.