Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD continues to rise inside the 4-hour Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 4-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and higher Clarity (6 bars). GBP/AUD is expected to rise further inside this chart pattern – in line with the earlier upward reversal from the support zone shown below.

As can be seen from the daily GBP/AUD chart below, the price earlier reversed up from the support zone located between the pivotal price level 1.7920 (former strong support from June and July) and the 50% Fibonacci correction of the upward impulse from September. The proximity of this support area increases the probability GBP/AUD will continue to rise inside this Ascending Triangle.