Trade of the Day: GBP/USD

GBP/USD continues to fall inside the daily Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 8-bar level – which is the result of the strong Initial Trend and Uniformity (8 bars) and significant (7 bars). GBP/USD is expected to fall further inside this Up Channel.

As can be seen from the weekly GBP/USD chart below – the pair earlier reversed down sharply from the resistance level 1.3180 (former yearly low from 2021, acting as the resistance after it was broken last year), upper weekly Bollinger Band and the resistance trendline of the weekly up channel from May. The proximity of these resistance levels and the overbought weekly Stochastic increase the probability GBP/USD will fall further inside this Up Channel.