By: Dima Chernovolov
GBPUSD continues to rise inside the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which reflects the strong Initial Trend (8 bars) and above-average Uniformity and Clarity (6 bars). GBPUSD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily GBPUSD chart below – the pair recently broke the resistance area lying between the resistance level 1.2540 (top of the minor correction form June) and the 50% Fibonacci correction of the downward impulse from last month. This price area is acting as the support zone after it was broken. The proximity of this support area increases the probability GBPUSD will continue to rise inside this Up Channel.