Daily Forex Update: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inside the hourly 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 (3 bars), significant Uniformity (7 bars) and average Clarity (5 bars). GBP/USD is expected to fall further inside this Down Channel – in line with the earlier breakout of the major support level shown below.

As can be seen from the weekly GBP/USD chart below, the price today broke below the major, long-term support level 1.3060 – which has been repeatedly reversing the price from October of 2017. The last time it reversed the pair it formed the weekly Hammer. This level is acting as resistance after it was broken. The proximity of this resistance level increases the probability GBP/USD will continue to fall inside this Down Channel.

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