Trade of the Day: GBP/AUD
By: Dima Chernovolov
GBP/AUD continues to fall inside the 4-hour Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 3-bar level – which is the result of the slow Initial Trend (1 bar) and higher Uniformity (8 bars). GBP/AUD is expected to fall further inside this Rising Wedge.
As can be seen from the daily GBP/AUD chart below – the pair earlier reversed down from the resistance area located between the key resistance level 1.7580 (monthly high from April) and the upper daily Bollinger band. The proximity of this resistance zone adds to the probability GBP/AUD will continue to fall inside this Rising Wedge.