Trade of the Day: GBP/CAD
By: Dima Chernovolov
GBP/CAD continues to rise inside the hourly Up Channel chart pattern which was previously 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 (1 bar), above-average Uniformity (6 bars) and higher Clarity (7 bars). GBP/CAD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily GBP/CAD below, the price earlier reversed up with the daily Morning Star from the support area lying between the key support level 1.74000 (former low from the start of this month), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from February. The proximity of this resistance support increases the probability GBP/CAD will continue to rise inside this GBP/CAD.