Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to rise inside the daily Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (3 bars), lower Uniformity (2 bars) and significant Clarity (7 bars). GBP/USD is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the key resistance level shown below.

As can be seen from the daily GBP/USD chart below, the price earlier broke above the key resistance level 1.3740 (which has been steadily revising the price from the middle of January). This price level is acting as the strong support after it was broken. The proximity of this support level and the clear daily uptrend increase the probability GBP/USD will continue to rise inside this Rising Wedge.