Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to rise inside the 15-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the medium Initial Trend (5 bars), below-average Uniformity (4 bars) and strong Clarity (9 bars). GBP/USD is expected to rise further inside this Up Channel.

As can be seen from the weekly GBP/USD chart below – the pair earlier reversed up from the round supportlevel 1.0500, standing far below the lower daily and the weekly Bollinger Bands. The proximity of this support level and the oversold weekly Stochastic and RSI indicators increase the probability GBP/USD will continue to rise inside this Up Channel.