By: Dima Chernovolov
GBP/USD continues to fall inside the clear Falling Wedge chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which reflects the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and substantial Clarity (8 bars). GBP/USD is expected to fall further inside this chart pattern – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily GBP/USD chart below, this Falling Wedge is aligned with the active weekly downward impulse wave which started earlier from the resistance area lying between the major resistance level 1.3500, upper weekly Ballinger Band and the 50% Fibonacci correction of the downward price impulse from May of 2016. The proximity of this resistance zone increases the probability GBP/USD will continue to decline inside this Falling Wedge.
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