Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD recently broke the key resistance level 1.2049, which was recently identified by Autochartist. Autochartist rates the significance of this resistance level at the 3-bar level – which is the result of the three previous reversals from this resistance level. GBP/USD is expected to continue to rise toward the forecast price 1.2144.

As can be seen from the daily GBP/USD chart below – the pair earlier reversed up from the support area located between the key support level 1.1855 (previous monthly low from January), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from October. The proximity of this support area adds to the probability GBP/USD will continue to rise toward the forecast price 1.2144.