Daily Forex Update: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to fall inside the well-formed Falling Wedge chart pattern which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the Quality of this Falling Wedge at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), significant Uniformity (7 bars) and higher Clarity (8 bars). GBP/AUD is expected to fall further inside this Falling Channel – continuing the active daily impulse wave from the resistance zone shown below. 

As can be seen from the daily GBP/AUD chart below, the price earlier reversed down with the daily Bearish Engulfing from the resistance zone lying between the powerful resistance level 1.7100 (former strong support from May), upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from May. The strength of the active daily impulse wave (as indicated by the maximum “Initial trend” value) adds to the likelihood GBP/AUD will continue to decline inside this Falling Wedge.

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