Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD recently broke the 30-minute Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 7-bar level – which is the result of the above-average Initial Trend (6 bars), medium Uniformity (5 bars) and higher Clarity (7 bars). GBP/USD is expected to rise toward the forecast price 1.3958 – in line with the earlier upward reversal from the support area show below.

As can be seen from the daily GBP/USD chart below – the price earlier reversed up from the support area located between the key support level 1.3800 (former resistance from January, which has been reversing the pair from the start of February), lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous upward impulse from December. The proximity of this support area increases the probability GBP/USD will continue to rise toward the forecast price 1.3958.