Daily Forex Update: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to rise inside the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel chart at the 5-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (7 bars) and strong Clarity (8 bars). GBP/AUD is expected to rise further inside this Up Channel – in line with the earlier breakout of key resistance level shown below.

As can be seen from the daily GBP/AUD below, the pair previously broke through the key resistance level 1.8500 (which stopped the previous sharp upward impulse in January). This price level is acting as strong support level after it was broken. The proximity of this support level increases the probability GBP/AUD will continue rise inside this Up Channel.