By: Dima Chernovolov
GBP/NZD continues to rise inside the clear Up Channel chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist measures the quality of this Up Channel at the 7-bar level – which reflects the slow Initial Trend (3 bars), significant Uniformity (7 bar) and maximum Clarity (10 bars). GBP/NZD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily GBP/NZD chart below, the bottom of this Up Channel formed when the pair reversed up from the support zone lying between the pivotal support level 1.7400 (with has been reversing the price from the middle of March) and the lower daily Bollinger Band. The proximity of the support zone and the oversold reading on the daily Stochastic indicator increase the probability GBP/NZD will continue to rise inside this Up Channel.
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