Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to fall inside the uniform daily Down Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). GBP/AUD is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support area shown below.

As can be seen from the weekly GBP/AUD chart below, the price recently broke sharply through the support area lying between the support level 1.7860 and the 61.8% Fibonacci correction of the sharp weekly upward impulse from last December. This price area is acting as strong resistance zone after it was broken. The proximity of this resistance area increases the probability GBP/AUD will continue to fall inside this Down Channel.