Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to fall inside the daily Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which reflects the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and medium Clarity (5 bars). GBP/AUD expected to fall further inside this Rising Wedge – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily GBP/AUD chart below – the top of this Rising Wedge when the price revered down from the resistance area lying between the key resistance level 1.9730 (which stopped the sharp uptrend in January) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/AUD will continue to fall inside this Rising Wedge.