Trade of the Day: GBP/USD
GBP/USD continues to fall inside the hourly 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), strong Uniformity (8 bars) and lower Clarity (2 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 zone located between the resistance level 1.2650, upper weekly Bollinger Band and the 61.8% Fibonacci correction of the weekly downward impulse from the middle of last year. The proximity of this resistance zone increases the probability GBP/USD will continue to fall inside this Falling Wedge.