Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to fall inside the clear 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Up Channel at the 5-bar level – which is the result of the below-average Initial Trend and Uniformity (4 bars) and higher Clarity (7 bars). GBP/CAD is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily GBP/CAD below, the price earlier reversed down from the resistance area lying between the key resistance level 1.7570 (which has been reversing the price from the start of April), upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from March. The proximity of this resistance area increases the probability GBP/CAD will continue to fall inside this Up Channel.