GBP/USD continues to advance inside the Triangle chart pattern identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this Triangle at the 5 bar level as a result of the average Initial Trend (5 bars), higher Uniformity (6 bars) and lower Clarity (4 bars). The bottom of this Triangle (point C on the chart below) formed when the pair reversed up from the major long-term support level 1.5300 (which had been reversing all downward impulses of this currency pair form the end of 2010) coinciding with the longer-term Triangle support trendline from the start of 2009 (the latest upward reversal at D also occurred close to this support trendline). Points C and D of this Triangle enclose another chart pattern which has also been recently identified by Autochartist -Flag, shown below.
The following chart shows the Flag pattern, which is enclosed by the Triangle chart pattern shown above. Two daily chart patterns pointing in one direction increase the likelihood of further gains for GBP/USD.
The monthly GBP/USD chart below highlights the technical price levels mentioned above:
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