Trade of the Day: GBP/USD

GBP/USD rising inside the 30-minute Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the low Initial Trend (2 bars), strong Uniformity (4 bars) and near-maximum Clarity (9 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 the resistance trendline of the daily down channel from August and the resistance level 1.2250 (top of the earlier minor correction from the end of last month). Both of these price levels are acting as the strong support after they were broken. The proximity of these support levels adds to the probability GBP/USD will continue rise inside this Rising Wedge.