Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inside the hourly Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and significant clarity (7 bars). GBP/USD is expected to fall further inside this Down Channel .

As can be seen from the weekly GBP/USD chart below – the price earlier broke the support area located between the key support level 1.2670 (which reversed the price sharply at the end of 2020) and the 50% Fibonacci correction of the weekly uptrend from the start of 2020. The strength of the active weekly Downard impulse adds to the probability GBP/USD will continue to fall inside this Down Channel.