Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD continues to rise inside the 30-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (4 bars), above-average Uniformity and Clarity (6 bars). GBP/CAD is expected to rise further inside this Up Channel.

As can be seen from the weekly GBP/CAD chart below – the pair earlier broke though the resistance area set between the major resistance barrier at 1.6635 (former yearly low from 2020 and 2021) and the 61.8% Fibonacci correction of the weekly downtrend from the start of 2021. The price area is acting as the strong support zone after it was broken. The proximity of this support zone and the strength of the active weekly upward impulse add to the probability GBP/CAD will continue to rise inside this Up Channel.