Trade of the Day: GBP/NZD

By: Dima Chernovolov

GBP/NZD continues to rise toward the key resistance level 1.9523 (of the type Approach) – which was previously identified by Autochartist. Autochartist rates the quality of this resistance level at the 5-bar level – which is the result of the five recent price reversals from this price level.  GBP/NZD is expected to rise toward the resistance level 1.9523 – in line with the earlier upward reversal from the key support area highlighted below.

As can be seen from the daily GBP/NZD chart below – the pair earlier reversed up from the support area lying between the key support level 1,9310 (former strong support from 2019) and the lower weekly Bollinger Band. The proximity of this support area and the oversold reading on the weekly Stochastic indicator – both add to the probability GBP/NZD will continue to rise toward the key resistance level 1.9523.