Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD recently broke the hurly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and lower Clarity (2 bars). GBP/AUD is expected to fall toward the forecast price 1.8169.

As can be seen from the daily GBP/AUD chart below – the pair earlier reversed down from the major resistance area daily 1.8285 (which has been reversing the price from last November) and the upper Bollinger Band. The proximity of the resistance area daily 1.8285 increases the probability GBP/AUD will continue to fall toward the forecast price 1.8169.