Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD recently broke the key resistance level 1.7924, which was recently identified by Autochartist. Autochartist rates the significance of this resistance level at the 3-bar level – which is the result of the 3 earlier reversals from this price level. GBP/AUD is expected to rise further toward the forecast price 1.7954.

As can be seen from the daily GBP/AUD chart below – the pair earlier broke the resistance area located between the resistance level 1.7800 and the 50% Fibonacci correction of the sharp downward impulse from October. This price area is acting as the support zone after it was broken. The proximity of support area adds to the probability GBP/AUD will continue rise toward the forecast price 1.7954.