Trade of the Day: GBP/AUD
By: Dima Chernovolov
GBP/AUD continues to rise inside the well-formed daily Down Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the sharp Initial Trend (9 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). GBP/AUD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the weekly GBP/AUD chart below, the bottom of this Down Channel formed when the price earlier reversed up from the support area lying between the multi-month support level 1.7865, 61.8% Fibonacci correction of the upward impulse from last December and the lower weekly Bollinger Band. The proximity of this support area increases the probability weekly GBP/AUD will continue to rise inside this Down Channel.
