Trade of the Day: GBP/USD
By: Dima Chernovolov
GBP/USD recently broke the key resistance level 1.3516 which was previously identified by Autochartist on the daily charts. Autochartist rates the Significance of this resistance level at the 6-bar level – which is the result of the six previous price reversals from this price level. GBP/USD is expected to continue to rise toward the forecast price 1.3555.
As can be seen from the daily GBP/USD chart below – the price earlier reversed up from the support zone lying between the pivotal support level 1.3420 (previous monthly low from September) and the lower daily Bollinger Band. The proximity of this support zone increases the probability GBP/USD will continue to rise toward the forecast price 1.3555.