Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to rise inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), average Uniformity (5 bars), and strong Clarity (8 bars). GBP/AUD is expected to rise further inside this Down Channel – in line with the recent upward reversal from the support area highlighted below.

As can be seen from the daily GBP/AUD chart below – the pair recently reversed up from the support area lying between the key support level 1.9600 (which also previously reversed the price sharply in March), lower daily Bollinger Band and the 61.8% Fibonacci retracement of the pervious upward impulse from December. The proximity of this support area increases the probability GBP/AUD will continue to rise inside this Down Channel.