Trade of the Day: GBP/AUD

By: Dima Chernovolov

GBP/AUD today broke the 15-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 8-bar level – which is the result of the strong Initial Trend (8 bars), significant Uniformity (7 bars) and higher Clarity (8 bars). GBP/AUD is expected to fall toward the forecast price 1.7754.

As can be seen from the weekly GBP/AUD chart below – the pair earlier reversed down from the major resistance zone located between the key resistance level 1.8080 (which has been reversing the price from the start of this year) and the upper weekly and daily Bollinger Bands. The proximity of this resistance zone and the still overbought weekly Stochastic increase the probability USD/CAD will continue to fall toward the forecast price 1.7754.