Trade of the Day: GBP/USD

GBP/USD continues to fall inside the 15-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the medium Initial Trend and Uniformity (5 bars). GBP/CAD is expected to fall further inside this Down Channel.

As can be seen from the daily GBP/USD chart below – the pair earlier broke the powerful support level 1.2345 (which has been reversing the price from April) intersecting with the 61.8% Fibonacci correction  of the sharp upward impulse from March.  The price levels are acting now as the strong resistance after they were broken.  The proximity of these resistance adds to the probability GBP/USD will continue to fall inside this Down Channel.