Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to rise inside the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity (9 bars) and lower Clarity (3 bars). GBP/AUD is expected to rise further inside this Up Channel – in line with the earlier breakout of the powerful resistance level shown below.

As can be seen from the daily GBP/AUD chart below, the price earlier broke above the key resistance level 1.9110 (which stopped the sharp upward impulse in September). The breakout of this resistance level increased the bullish pressure on this currency pair. This price level is acting as the strong support level after it was broken. The proximity of this support level increases the probability GBP/AUD will continue to rise inside this Up Channel