Daily Forex Update: GBP/NZD

By: Dima Chernovolov

GBP/NZD continues to fall inside the clear Up Channel chart pattern which was recently identified by Autochartist on the daily charts. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (4 bars), average Uniformity (5 bars) and significant Clarity (8 bars). GBP/NZD is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the major resistance area highlighted below.

As can be seen from the weekly GBP/NZD chart below, the top of this Up Channel formed when the pair reversed down from the resistance area lying between the major resistance level 1.9340 (former strong support level from 2015), upper weekly Bollinger Band and the 50% Fibonacci correction of the previous sharp weekly impulse wave from May. The proximity of this resistance zone increases the probability GBP/NZD will continue to fall inside this Up Channel.

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