Daily Forex Update: GBP/NZD

By: Dima Chernovolov

GBP/NZD continues to fall after the recent breakout of the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle chart at the 8-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (7 bars) and strong Clarity (9 bars). GBP/NZD is expected to fall further toward the forecast price 1.9128 – in line with the earlier downward reversal from the strong resistance area shown below.

As can be seen from the daily GBP/NZD below, the top of this Triangle formed when the price reversed down from the the resistance area lying between the key resistance level 1.9450 (monthly high from January), upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous downward impulse from October. The proximity of this resistance area increases the probability GBP/NZD will continue to fall toward forecast price 1.9128.