GBP/USD has just completed the high Quality Up Channel chart pattern identified by Autochartist on the daily charts. The Quality of this chart pattern is rated at the high 7 bar level, which is the result of the strong values of all the quality indicators that contribute to its value: maximum Initial Trend (measured at the10 bar level), near maximum Clarity (9 bars) and significant Uniformity (7 bars) of this Up Channel. Very high Initial Trend reflects the sharpness of the preceding down impulse which reversed from the support level at 1.5350, forming the first connecting point for the lower support line of this chart pattern.
The price previously reversed down from the upper channel line which passes very close to the previous high near resistance level 1.6300 and the long-term down trend resistance line starting on 05.08.2009. This reversal coupled with the bearish divergence on the weekly charts should help attract additional sales in the nearest sessions.
The price has just broken through the lower support line of this Up Channel and is expected to continue falling toward the Forecast Zone located between price levels 1.5423 and 1.5765.
The lower-term 15-minute GBP/USD chart shows highly Uniform Falling Wedge chart pattern developing in accordance with the downward Breakout shown above. The Uniformity of this chart pattern is rated at the 7 bar level. The price is close to the upper resistance line of this chart pattern that can be used for opening sell entries protected with a close stop-loss.
For further information on this and other Autochartist products visit www.autochartist.com