Daily Forex Update: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inside the Down Channel chart pattern was recently identified by Autochartist on the 30-minute. Autochartist rates the Quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). GBP/USD is expected to fall further inside this Down Channel – continuing the earlier breakout of the support area described below.

As can be seen from the daily GBP/USD chart below, the price earlier broke the support area located between the key support level 1.2650 (which reversed the price earlier this month) and the 38.2% Fibonacci correction of the upward impulse from March. This price area is acting as resistance zone after it was broken. The proximity of this resistance area adds to the probability GBP/USD will continue to fall inside this Down Channel.

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