Daily Forex Update: GBP/USD
By: Dima Chernovolov
GBP/USD continues to rise inside the 4-hour 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), below-average Uniformity (4 bars) and strong Clarity (8 bars). GBP/USD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the strong support zone shown below.
As can be seen from the GBP/USD chart below, the price earlier reversed up with the daily Morning Star from the support zone lying between the key support level 1.3120 (which reversed the price multiple times from November) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic increase the probability GBP/USD will continue to rise inside this Down Channel.
As can be seen from the GBP/USD chart below, the price earlier reversed up with the daily Morning Star from the support zone lying between the key support level 1.3120 (which reversed the price multiple times from November) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic increase the probability GBP/USD will continue to rise inside this Down Channel.
