Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inside the 15-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), average Uniformity (5 bars) and strong Clarity (8 bars). GBP/USD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily GBP/USD chart below – the price earlier reversed down from the resistance area lying between the key resistance level 1.2610 (which previously reversed the price twice in April) and the upper daily Bollinger band. The proximity of this resistance area increases the probability GBP/USD will continue to fall inside this Down Channel.

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