By: Dima Chernovolov
GBP/AUD recently broke the extended 4-hour Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which reflects the slow Initial Trend (2 bars), and above-average Uniformity and Clarity (both rated at the 6 bar level). The strength of this breakout if rated by Autochartist at the highest – 10 bar level – which adds to the probability the price will continue to rise toward the forecast price 1.7942.
As can be seen from the daily GBP/AUD below, the breakout of this Triangle coincided with the breakout of the key resistance level 1.7740 (which reversed the two previous upward corrections in November and also earlier this month). This price level is acting as a strong support after it was broken. The proximity of this support level increases the probability GBP/AUD will continue to rise in the direction of the forecast price 1.7942.
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