Daily Forex Update: GBP/USD

Pattern selection is often the most intimidating aspect of trading. How is one to know which pattern is most likely to follow through? With this query in mind, consider the following opportunities from the next two Emerging Pattern alerts on the GBP/USD.

The pattern on the 60-minute chart is a Rising Wedge. Trending patterns should ideally alert with an Initial Trend reading of six bars or higher. This alert, though, has an Initial Trend reading of just a single bar, which of course indicates that there is no trend. The entry strategy would therefore be to wait for movement through uptrend line support, in expectation of downward momentum, should prices break 1.4950 (A). This would trigger both a reversal of the Rising Wedge and an uptrend line breakdown.