Trade of the Day: GBP/AUD

GBP/AUD recently broke the daily down channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this down channel at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), strong Uniformity (9 bars) and significant Clarity (7 bars). GBP/AUD is expected to rise toward the forecast price 1.7875.

As can be seen from the daily GBP/AUD chart below – the breakout of this down channel coincided with the breakout of the resistance level 1.7635 and the 50% Fibonacci correction of the downward impulse from January. Both of these price levels are acting as the support levels after they were broken. The proximity of these support levels adds to the probability GBP/AUD will continue to rise toward the forecast price 1.7875.