Trade of the Day: GBP/USD

By: Dima Chernovolov

GBP/USD continues to fall inside the 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and strong Clarity (7 bars). GBP/USD is expected to fall further inside this Falling Wedge.

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 1.2155 (which has been reversing the price from the start of February), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward correction from January. The proximity of this resistance area adds to the probability GBP/USD will continue to fall inside this Falling Wedge.