GBP/USD: Take A Look At The Monthly Filter Chart

GBP/USD broke below the support at 1.5230 and continued descending slowly all day. Soon the pair will reach 1.5150, a very strong level of support visible on the weekly filter chart. I admit I spent some time wondering whether the pair will break below that level and continue descending, and then it occurred to me to take a look at the monthly filter chart, something I don’t do very often for obvious reasons. As you can see on the screenshot here:

GBP/USD has formed a doji candlestick pattern on the monthly filter chart, which is a pretty serious indication that the pair will probably continue descending. Considering that information, I concluded that GBP/USD is very likely to break below the support at 1.5150 and head for target 1.4630.