Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD recently broke the key resistance level 1.3778 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 4-bar level – which is the result of the four previous price reversals from this price level. GBP/USD is expected to continue to rise toward the forecast price 1.3858.

As can be seen from the daily GBP/USD chart below – the pair earlier reversed from the support area located between the key support 1.3665 (former monthly low from march and April), lower daily Bollinger band and the 50% Fibonacci correction of the upward impulse from December. The proximity of this support zone increase the probability GBP/USD will continue rise fall toward the forecast price 1.3858.