By: Dima Chernovolov
GBP/USD continues to fall inside the clear Down Channel chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the quality of this Down Channel at the 4-bar level – which reflects the slow Initial Trend (4 bars), lower Uniformity (2 bars) and above-average Clarity (6 bars). GBP/USD is expected to fall further inside this Down Channel – in line with the recent breakout of the major support level shown below.
As can be seen from the weekly GBP/USD chart below, the pair previously broke below the major long-term support level 1.3000, which has been reversing the price from the middle of last year. This price level is acting as a strong resistance level 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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