Trade of the Day: GBP/NZD
By: Dima Chernovolov
GBP/NZD continues to rise inside the 15-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and strong Clarity (8 bars). GBP/NZD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the powerful support area shown below.
As can be seen from the daily GBP/NZD chart below, the price earlier reversed up sharply from the major support zone located between the key support level 1.9050 (which formed the perfect daily Double bottom in July), and the lower daily Bollinger Band. The proximity of this support zone increases the probability GBP/NZD will continue rise fall inside this Up Channel.