By: Dima Chernovolov
GBP/USD continues to rise inside 4-hour Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and higher Clarity (76 bars). GBP/USD is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the resistance zone shown below.
As can be seen from the daily GBP/USD chart below, the pair previously broke through the resistance zone lying at the intersection of the key resistance level 1.3295 (which also earlier stopped the price at the start of this month) and the resistance trendline of the daily up channel from September. This price area is acting as the support zone father it was broken. The proximity of this support zone increases the probability GBP/USD will continue to rise inside this Rising Wedge.