GBP/USD Tests 1.6550 Ceiling

The GBP/USD has rallied to make a triple top as prices once again are being rejected by the 1.6550 ceiling. Although the Emerging Continuation Channel Up pattern is wide, it shows some very important clues about what could be next for the pair known as the "cable".




Notice that price has been exhausted several times at the same level across this 60 minute timeframe. The Initial Trend is rather low for a channel pattern which ideally should be occurring in a trend. The Initial Trend here indicates a weakening - not strengthening - trend. The low Initial Trend is an excellent confirmation of the exhaustion of the triple top. Consequently, there is a chance that shorter time frames like a 15 or 30 will have a chart pattern alert that will capitalize on a near term reversal.








The 15 minute chart has a Continuation Channel Up that has reached the Forecast Region support and has bounced slightly. This is important to note as the 30 minute chart is triggering a Continuation Rising Wedge reversal as price breaks down through uptrend line support. The very support that the 15 minute chart is at is going to determine whether the 30 minute chart will follow through to the downside. Much of the support coming into the GBP/USD right now is from the major psychological support of the "00" at 1.6500.

For further information, visit http://autochartist.com