By: Dima Chernovolov
GBP/AUD continues to rise inside the daily Rectangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rectangle at the 8-bar level – which is the result of the strong Initial Trend (7 bars), above-average Uniformity (7 bars) and substantial Clarity (8 bars). GBP/AUD is expected to rise further inside this Rising Rectangle – in line with the earlier upward reversal from the support area shown below.
As can be seen from the weekly GBP/AUD chart below, the pair earlier reversed up with the weekly Japanese candlesticks reversal pattern Morning Star from the support area lying between the key support level 1.81 (which also reversed the pair with weekly Morning Star in April) and the 50% Fibonacci correction of the upward impulse from last December. The proximity of this support area increases the probability GBP/AUD will continue to rise inside this Rectangle.