Daily Forex Update: GBP/NZD

By: Dima Chernovolov

GBP/NZD continues to fall inside the clear 15-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (one bar), above-average Uniformity (6 bars) and strong Clarity (8 bars). GBP/NZD is expected to fall further inside this Falling Wedge – in line with the active daily impulse wave from the powerful resistance area shown below.

As can be seen from the weekly GBP/NZD chart below, price earlier reversed down with the weekly Japanese candlesticks reversal pattern Shooting Star Doji from the combined resistance area lying between the major resistance level 1.9750 (which stopped the sharp uptrend in November) and upper weekly Bollinger Band. The proximity of resistance area increases the probability GBP/NZD will continue to fall inside this Falling Wedge.

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