Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD recently broke the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which reflects the slow Initial Trend (4 bars), strong Uniformity (8 bars) and significant Clarity (6 bars).  GBP/AUD is expected to rise toward the forecast price 1.8264 – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily GBP/AUD chart below – the pair recently reversed up from the support area lying between the support level 1.7915 (which has been reversing the pair from the middle of June) and the lower daily Bollinger band. The proximity of this support zone adds to the probability GBP/AUD will continue to rise toward the forecast price 1.8264.