Trade of the Day: GBP/AUD
By: Dima Chernovolov
GBP/AUD continues to fall inside the 4-hour Down Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the below-average Initial Trend and Uniformity (4 bars) and strong Clarity (8 bars). GBP/AUD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily GBP/AUD chart below, the pair earlier reversed down from the resistance area lying between the major resistance level 1.8865 (former monthly high from March and May) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/AUD will continue to fall inside this Down Channel.