By: Dima Chernovolov
GBP/USD recently broke the key support level 1.3833 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five previous price reversals from this price level. GBP/USD is expected to continue to fall toward the key support level 1.3759.
As can be seen from the daily GBP/USD chart below – the pair earlier reversed down from the resistance area located between the key resistance 1.3890 (which reversed the price at the start of July) and the 38.2% Fibonacci correction of the downward impulse from June. The proximity of this resistance zone increase the probability GBP/USD will continue to fall toward the support level 1.3759.