Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inside the 15-minute Down Channel chart pattern, which was previously 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 (3 bars), below-average Uniformity (4 bars) and strong Clarity (9 bars). GBP/USD is expected to fall further inside this Down Channel.

As can be seen from the daily GBP/USD chart below – the pair earlier broke the support area located between the two strong support levels 1.2000 and 1.1900 (previous upward reversal pivots). This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone and the powerful daily downtrend add to the probability GBP/USD will continue to fall inside this Down Channel.