Daily Forex Update: GBP/USD

By: Dima Chernovolov

GBP/USD continues to rise inside the clear Up Channel chart pattern which was recently identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (3 bars), lower Uniformity (2 bars) and above-average Clarity (6 bars). GBP/USD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily GBP/USD chart below, the price earlier reversed up from support area lying between the key support level 1.3300 (former resistance level and the upper boundary of the sideways price range inside which the pair has been trading from October, acting as support after it was broken recently) and the 50-day moving average. The proximity of this support area and the rising daily Momentum increase the probability GBP/USD will continue to rise inside this Up Channel.

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