Trade of the Day: GBP/AUD
By: Dima Chernovolov
GBP/AUD continues to fall inside the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the significant Initial Trend (7 bars), lower Uniformity (4 bars) and strong Clarity (8 bars). GBP/AUD is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily GBP/AUD below, the price earlier reversed down from the resistance area lying between the powerful resistance level 1.8740 (which has been reversing the price from October) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/AUD will continue fall inside this Up Channel.