Trade of the Day: GBP/AUD
By: Dima Chernovolov
GBP/AUD continues to rise inside the daily Down Channel chart pattern which was identified earlier by Autochartist. Autochartist rates the quality of this Up Channel at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). GBP/AUD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily GBP/AUD, the price earlier reversed up from the support area lying between the strong support level 1.7600 (which has been reversing the price form January) and the lower daily Bollinger Band. The proximity of this support zone and the bullish divergence on the daily Stochastic indicator increase the probability GBP/AUD will continue to rise inside this Down Channel.