Trade of the Day: GBP/AUD
By: Dima Chernovolov
GBP/AUD recently broke the 4-hour Key Support Level 1.8882, which was identified previously by Autochartist. Autochartist rates the Significance of this Support Level at the 5-bar level – which is the result of the five previous price reversals from this price level. GBP/AUD is expected to fall toward the forecast price 1.8766.
As can be seen from the daily GBP/AUD chart below – the price earlier broke the October and the 38.2% Fibonacci correction of the previous sharp upward impulse from October. Both of these price levels and the aforementioned price level 1.8882 are acting as resistance levels after they were broken. The proximity of these resistance levels heightens the probability GBP/AUD will continue to fall toward the forecast price 1.8766.