Daily Forex Update: GBP/NZD
By: Dima Chernovolov
GBP/NZD continues to fall after the recent breakout of the Flag chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the Quality of this Flag at the 8-bar level – which reflects the sharp Initial Trend (rated at the maximum 10-bar level), average Uniformity (5 bars) and significant Clarity (7 bars). Autochartist rates the strength of this breakout at the strong, 10-bar level – which adds to the probability the pair will continue to fall toward the forecast price 1.7264.
As can be seen from the daily GBP/NZD chart below, the top of this Flag formed near the resistance zone lying between the resistance level 1.0800 and the 38.2% Fibonacci correction of the previous sharp downward impulse from May (its strength is reflected by the maximum Initial Trend value fo this Flag). The proximity of the resistance zone adds to the probability GBP/NZD will continue to fall toward the forecast price 1.7264.
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