By: Dima Chernovolov
GBP/AUD recently reversed down from the top of the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 8-bar level – which is the result of the strong Initial Trend (7 bars), high Uniformity (9 bars) and significant Clarity (7 bars). GBP/AUD is expected to fall further inside this Up Channel chart in line with the earlier downward reversal from the resistance area highlighted below.
As can be seen from the daily GBP/AUD chart below, the recent reversal from the top of this daily Up Channel was followed by the downward reversal from the resistance zone located between the resistance level 1.8500 and the upper daily Bollinger Band. This reversal created the daily Evening Star. The proximity of this resistance zone increases the probability GBP/AUD will continue to fall inside this Up Channel
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