Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inisde the 15-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (6 bars) and strong Clarity (8 bars). GBP/USD is expected to fall further inside this Down Channel.

As can be seen from the daily GBP/USD chart below – the price recently broke the support area located between the support levels 1.2170 and 1.2090. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone increases the probability GBP/USD will continue to fall inside this Down Channel.