Trade of the Day: GBP/AUD

By: Dima Chernovolov
GBP/AUD continues to fall inside the 30-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the average Initial Trend (5 bars) and higher Uniformity and Clarity (6 bars). GBP/AUD is expected to fall further inside this Up Channel.

As can be seen from the daily GBP/AUD chart below – the price recently reversed down from the major resistance level 1.7800 (which has been reversing the pair from the end of April), standing close to the upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from March. The proximity of this resistance area adds to the probability GBP/AUD will continue to fall inside this Up Channel.