Trade of the Day: GBP/CAD

By: Dima Chernovolov

GBP/CAD recently broke the daily Triangle chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (7 bars) and near-maximum Clarity (8 bars). GBP/CAD is expected to rise toward the forecast price 1.6754 – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily GBP/CAD chart below, the price earlier reversed up from the major support area lying between the long-term support level 1.5860 (which has been reversing the price form the end of 2016) 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 1.6754.