Daily Forex Update: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to fall inside the Down Channel chart pattern which was previously identified by Autochartist on the 15-minute charts. Autochartist rates the quality of this Down Channel at the 5-bar level – which reflects the medium-strength Initial Trend (5 bars), above-average Uniformity (6 bars) and lower Clarity (3 bars). GBP/AUD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily GBP/AUD chart below, the pair recently reversed down from the resistance zone lying between the key resistance level 1.6380 (former support level from August), resistance trendline from July and the 38.2% Fibonacci correction of the downward impulse from the start of August. The proximity of this resistance area adds to the likelihood GBP/AUD will continue to fall inside this Down Channel.

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