By: Dima Chernovolov
GBP/CAD continues to fall inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 8-bar level – which reflects the sharp Initial Trend (10 bars) and strong Uniformity and Clarity (7 bars each). 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 chart below – the top of this Up Channel formed when the price reversed down from the resistance area lying between the pivotal resistance level 1.7180 (former monthly high from June) and the upper daily Bollinger Band. The proximity of this resistance area and the strength of the previous daily downward impulse (its strength reflected by the maximum Initial Trend value) increase the probability GBP/CAD will continue to fall inside this Up Channel.