The GBP/USD formed a completed pattern with its clean breakout above the down sloping resistance line of a 240-minute Falling Wedge chart pattern. The forecast is for the breakout rally to continue to 1.6228 to 1.6381.
The quality rating of this chart pattern is a solid 9-bars, the initial trend and breakout ratings carry a maximum 10-bar rating. The smooth nature of the lower-top, lower-bottom swing pattern inside of the down trending support and resistance lines helped contribute to the 9-bar uniformity rating. Several spiky moves on the daily candlesticks may have helped lower the clarity ratings.
Upside momentum is needed to continue to drive this market higher. With an old top at 1.6278 and the forecast zone at 1.6228 to 1.6381, traders should treat this overlap as an important resistance zone and upside target.
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