Trade of the Day: GBP/AUD
By: Dima Chernovolov
GBP/AUD recently broke the 30-minute Falling Wedge chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). GBP/AUD is expected to rise toward the forecast price 1.8199 – in line with the earlier upward reversal from the powerful support area highlighted below.
As can be seen from the daily GBP/AUD chart below, the price earlier reversed up from the support area lying between the key support level 1.81160 (which has been reversing the price from February), lower daily Bollinger Band and 50% Fibonacci correction of the previous upward impulse from December. The proximity of this support area increases the probability GBP/AUD will continue to rise toward the forecast price 1.8199.