Daily Forex Update: GBP/USD
By: Dima Chernovolov
GBP/USD recently broke the high Quality Rising Wedge chart pattern which was previously identified by Autochartist on the daily charts. Autochartist measures the overall Quality of this Rising Wedge at the 9 bar level – which is the result of the sharp Initial Trend (10 bars) and near-maximum Uniformity and Clarity (both rated at the 9 bar level). Autochartist similarly rates the strength of this breakout at 10-bar level – which increases the probability GBP/AUD will continue to fall toward the forecast price 1.2137.
As can be seen from the daily GBP/AUD chart below, the top of this Rising Wedge formed when the price reversed down from the resistance area located between the pivotal resistance level 1.2770 (former powerful support from July), upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from September. The proximity of this resistance zone is expected to intensify the bearish pressure on GBP/AUD in the coming trading sessions.
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