GBP/AUD 4H Chart: Narrow Channel

The Pound continue to surge against the Australian Dollar. Namely, the pair is in three ascending channel patterns of various scale. In this review the main attention is on the medium and short term channels.

The situation is rather simple. The currency exchange rate recently rebounded against the support of the medium scale pattern and began a surge, which resulted in another channel up pattern.

Most recently the pair consolidated after reaching above the 1.7350 mark and found renewed strength in the support of the weekly R1 at the 1.7286 level.

Comment:

As one can observe on the charts, the previously active short term and narrow range channel was broken. The move was expected due to the fact that the channel was simply too narrow for it to guide the currency exchange rate in the medium term.

Recently a rebound occurred, which confirmed the borders of the medium term channel up pattern that should guide the pair for somewhere near a month.

Meanwhile, the rebound seems to be revealing another narrow channel up pattern, which is set to guide the currency pair up to the 1.7345 mark, where the weekly R1 is located at.