Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to rise inside the 15-minue Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (9 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 the support area lying between the support level 1.3525 (former resistance from the start of December) and the 38,2% Fibonacci correction of the previous upward impulse from last month. The proximity of this support area and the strong daily uptrend increase the probability GBP/USD will continue to rise inside this Up Channel.