By: Dima Chernovolov
GBP/AUD continues to fall toward the hourly Key Support Level 1.8546 identified previously by Autochartist. Autochartist rates the quality of this Support Level at the 5-bar level – which is the result of the five recent upward reversals from this price level (as can be seen below). GBP/AUD is expected to fall further toward the Support Level 1.8546 – in line with the earlier downward reversal from the strong resistance area shown below.
As can be seen from the daily GBP/AUD below, the price earlier reversed down from the resistance area lying between the multi-month resistance level 1.8790 (which has been reversing the price from January) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/AUD will continue to fall toward the Support Level 1.8546.