By: Dima Chernovolov
GBP/USD continues to fall after the recent breakout of the daily Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the average Initial Trend (5 bar), strong Uniformity (7 bars) and lower Clarity (4 bars). GBP/USD is expected to fall toward the forecast price 1.2665 – in line with the earlier breakout of the key support area shown below.
As can be seen from the daily GBP/USD below, the price earlier broke through the support area lying between the pivotal support level 1.2880 (monthly low from April) and the 50% Fibonacci correction of the previous upward impulse from January. This price area is acting as resistance area after it was broken. The proximity of this resistance area increases the probability GBP/USD will continue to fall toward the forecast price 1.2665.