By: Dima Chernovolov
GBP/AUD recently broke the daily Pennant chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Pennant at the 8-bar level – which is the result of the maximum Initial Trend (10 bars), significant Uniformity (7 bars) and high Clarity (10 bars). GBP/AUD is expected to rise further toward the forecast price 1.8501 – in line with the earlier breakout of the key resistance level shown below.
As can be seen from the daily GBP/AUD below, the breakout of this Pennant accelerated the current sharp upward impulse wave – which then broke above key resistance level 1.8340 (which reversed the price at the start of February). This price level is acting as strong support after it was broken. The proximity of this support level increases the probability GBP/AUD will continue to rise toward the forecast price 1.8501.
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