By: Dima Chernovolov
GBP/AUD has been falling in the last few trading sessions after the earlier downward reversal from the top of the daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (4 bars), average Uniformity (5 bars) and significant Clarity (8 bars). GBP/AUD is expected to fall further inside this Up Channel – in line with the earlier upward breakout of the support area shown below.
As can be seen from the daily GBP/AUD chart below, the price earlier broke through the support area located between the support level 1.7360 (former resistance level from November) and 50% Fibonacci correction of the upward impulse from last month. This price area is acting a resistance zone after it was broken. The proximity of this resistance zone increases the probability GBP/AUD will continue to fall inside this Up Channel.
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