Trade of the Day: GBP/USD

GBP/USD recently broke the 4-hour Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the below-average Initial Trend (4 bar), significant Uniformity (7 bars) and higher Clarity (8 bars). GBP/USD is expected to fall toward the forecast price 1.2346.

As can be seen from the daily GBP/USD chart below – the pair earlier reversed down with the daily Evening Star from the resistance zone located between the key resistance level 1.2520 (which stopped the price at the start of April) and the upper daily Bollinger Band. The proximity of this resistance zone and the clear bearish divergence on the daily Stochastic increase the probability GBP/USD will continue to fall toward the forecast price 1.2346.