Trade of the Day: GBP/NZD
By: Dima Chernovolov
GBP/NZD continues to rise inside the extended 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and strong Clarity (8 bars). GBP/NZD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily GBP/NZD chart below – the price earlier broke the resistance area lying between the round resistance level 2.000 and the 50% Fibonacci correction of the downward impulse from April. This price area is acting as the support zone after it was broken. The proximity of this support area adds to the likelihood GBP/NZD will continue to rise inside this Up Channel.