Trade of the Day: GBP/AUD

GBP/AUD continues to fall inside the 4-hour Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (1 bar) and strong Uniformity and Clarity (8 bars). GBP/AUD is expected to fall further inside this Triangle.

As can be seen from the weekly GBP/AUD chart below – the pair earlier reversed down sharply from the powerful multiyear resistance level 1.9160, which has been reversing the price from 2021 – standing near the upper weekly Bollinger Band. The proximity of this resistance level and the bearish divergence on the weekly Stochastic increase the probability the pair will fall further inside this Triangle.