Trade of the Day: GBP/USD
GBP/USD continues to rise inside the daily Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars) and above-average Uniformity and Clarity (6 bars). GBP/USD is expected to rise further inside this Rising Wedge.
As can be seen from the daily GBP/USD chart below – the pair earlier broke above the resistance level 1.2520 (which reversed the price twice from the start of this month). This price level is acting now as the strong support after it was broken. The proximity of this support level and the clear daily uptrend increase the probability GBP/USD will continue to rise inside this Rising Wedge.