Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the medium Initial Trend (5 bars), average Uniformity (5 bars) and higher Clarity (6 bars) GBP/AUD is expected to rise further inside this Up Channel – in line with the earlier downward reversal from the key resistance area shown below

As can be seen from the daily GBP/AUD below, the price earlier reversed up from the support area lying between the key support level 1.8440 (former strong resistance from January) and the 38.2% Fibonacci correction of the previous sharp upward impulse from February. The proximity of this support area increases the probability GBP/AUD will continue rise inside this Up Channel.