Daily Forex Update: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall after the recent breakout of the Pennant chart pattern which was previously identified by Autochartist on the daily charts. The overall Quality of this Pennant is measured by Autochartist at the 7 bar level – which is the result of the strong Initial Trend (10 bars), below-average Uniformity (4 bars) and significant Clarity (8 ABS). High Initial Trend reflects the sharpness of the previous downward impulse – which is serving as the “flag-pole” of this Pennant. GBP/USD is expected to fall to the forecast price 1.2917.

As can be seen from the PowerStats chart below – the lower boundary of the daily Expected Price Range calculated by Autochartist for this currency pair (1.2917) coincides with the forecast price calculated for the breakout of this Pennant  (1.2917) – which adds to the probability the pair will continue to fall toward this target tomorrow.

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