Trade of the Day: GBP/NZD
By: Dima Chernovolov
GBP/NZD continues to rise inside the 4-hour Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the sharp Initial Trend (10 bars), low Uniformity (2 bars) and medium (5 bars) GBP/NZD is expected to rise further inside this Down 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 price earlier reversed up from the support area located between the key support level 1.9140 (which also reversed the price in September) and the lower daily Bollinger Band. The proximity of this support area adds to the probability GBP/NZD will continue to rise inside this 4-hour Down Channel.