Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD recently broke the 4-hour Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 9-bar level – which reflects the sharp Initial Trend (10 bars), significant Uniformity (7 bars) and higher Clarity (8 bars).  GBP/AUD is expected to rise toward the forecast price 1.8100 – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily GBP/AUD chart below – the bottom of this Falling Wedge formed when the price earlier reversed up from the support area lying between the pivotal support 1.7920 (which has been reversing the price from the middle of June) and the lower daily Bollinger Band. The proximity of this support area adds to the probability GBP/AUD will continue to rise toward the forecast price 1.8100.