By: Dima Chernovolov
GBP/AUD continues to rise inside the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity (8 bars) and above-average Clarity (6 bars). GBP/AUD is expected to rise further inside this Up Channel – in line with the earlier upward breakout of the resistance area highlighted below.
As can be seen from the daily GBP/AUD chart below – the price earlier previously broke through the resistance area lying between the resistance level 1.9150 (previous weekly high form the start of January) and the 61.8% Fibonacci retracement of the previous downward correction from December. This price zone is acting as the support area after it was broken. The proximity of this support area increases the probability GBP/AUD will continue to rise inside this Up Channel.