Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD recently broke the 4-hour Double Bottom chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Double Bottom at the 6-bar level – which is the result of the strong Initial Trend (7 bars), above-average Clarity (6 bars) and average Uniformity (5 bars). GBP/USD is expected to rise toward the forecast price 1.4004 – in line with the recent breakout of the daily down channel show below.

As can be seen from the daily GBP/USD recently chart below – the breakout of this Double Bottom  was preceded by the breakout of the daily down channel from the end of February. The breakout of two different-type and different-length chart patterns increase the probability GBP/USD will continue to rise toward the forecast price 1.4004.