CAD versus GBP Brownian Motion Proces Stochastic Model on Price

At current market, both CAD multilateral band and GBP multilateral band are bearish, however it is difficult to predict which one of the band will initiate the bearish. This is resolved by using Brownian motion process stochastic. The stochastic is confirming the bearish with sudden drop initiated by CAD multilateral band to the new interdays low and followed by GBP multilateral band.

At such, Brownian motion process stochastic could be very useful to gauge which multilateral band will initiate for bearish of the bearish bands as well as to initiate the bullish of the bullish bands. Musa and DeJong (1992-1995) tested the Brownian motion process stochastic and found them in harmony from time to time.