Home » Market Research » Autochartist Forecast »

U.S. Banks are closed for Labor Day, therefore the 15 and 240 minute GBP/USD are trending higher as the U.S. Dollar is heading lower. The 15 minute chart signaled a Continuation Rising Wedge Emerging Chart Pattern alert. The pattern shows support at the uptrend line (B) and a potential breakout level at the uptrend resistance line (A). The uptrend line support (B) is further strengthened by the 1.6400 level (D). This would be excellent confirmation for the breakdown as both the uptrend line and the major psychological level would have to be broken to trigger a reversal of the uptrend and trigger a short.





With the Initial Trend very low on the 15 minute chart there is some question about the further strength of the uptrend on this time frame. The 240 minute chart is also in a markup cycle or uptrend. The Forecast Region on the chart sheds light on what could stall or reverse the uptrend.





The Forecast Region is an area of resistance not a single level. The initial resistance is at the 1.6420 (X) and extends to 1.6560 (Y). Since prices have already pulled back from the 1.6420 level the Forecast Region resistance is holding and explains why the trend is currently up but correcting. Look for near term support at 1.6405 and then 1.6380.

For further information on this and other chart patterns visit www.autochartist.com