Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD recently broke the key support level 1,8966 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 3-bar level – which is the result of the 3 previous price reversals from this price level. GBP/AUD is expected to continue to fall toward the forecast price 1,8874.

As can be seen from the daily GBP/AUD chart below – the pair earlier reversed down from the resistance zone lying between the key resistance level 1.9120 and the upper weekly Bollinger Band. The proximity of this resistance area and the overbought weekly Stochastic increase the probability GBP/AUD will continue to fall toward the forecast price 1,8874.