Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to rise inside the 15-minute Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 6-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). GBP/AUD is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the GBP/AUD chart below, the price earlier reversed up from the key support area lying between the powerful support level 1.7480 (which has been reversing the price from September) and the lower daily Bollinger Band. The proximity of this support area adds to the probability GBP/AUD will continue to rise inside this Rising Wedge.