Daily Forex Update: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inside the hourly Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 3-bar level – which is the result of the slow Initial Trend and Clarity (one bar) and strong Uniformity (8 bars). GBP/USD is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the resistance zone shown below.

As can be seen from the daily GBP/USD chart below, the price earlier reversed down from the strong resistance zone lying between the resistance level 1.3450, upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous downward impulse from last month. The proximity of this resistance zone increases the probability GBP/USD will continue to fall inside this chart pattern.

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