Trade of the Day: GBP/USD

GBP/USD continues to fall toward the 30-minute support level 1.2334, which was recently identified by Autochartist. Autochartist rates the significance of this support level at the 4-bar level – which is the result of the four previous reversals for this price level. GBP/USD is expected to soon reach this support level.

As can be seen from the daily GBP/USD chart below – the pair earlier reversed down from the resistance area located between the key resistance level 1.2445 (previous monthly high from December) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought daily Stochastic add to the probability GBP/USD will continue to fall toward the support level 1.2334.