By: Dima Chernovolov
GBP/USD continues to fall inside the 4-hour Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which reflects the slow Initial Trend and Uniformity (both rated at the 3 bar level) and stronger Clarity (8 bars). GBP/USD is expected to fall further inside this Down Channel – in line with the earlier breakout of the powerful support level shown below
As can be seen from the daily GBP/USD chart below, the pair previously broke through the pivotal support level 1.2800 (monthly low from September). This price level is acting as strong resistance level after it was broken. The proximity of this resistance level and the strength of the downtrend visible on the daily GBP/USD charts increase the probability the price will continue to fall inside this Down Channel.
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