By: Dima Chernovolov
GBP/USD continues to fall inside the hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the medium Initial Trend (5 bars), low Uniformity (2 bars) and significant Clarity (7 bars). GBP/USD expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the weekly GBP/USD chart below – price earlier reversed down from the resistance area lying between the long-term resistance level 1,3500 (former powerful resistance from the end of 2019) and the upper weekly Bollinger Band. The proximity to this resistance area and the overbought weekly Stochastic increase the probability GBP/USD will continue to fall inside this Down Channel.