Trade of the Day: GBP/NZD
By: Dima Chernovolov
GBP/NZD continues to rise inside the daily Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 6-bar level – which is the result of the slow Initial Trend (3 bars), strong Uniformity (8 bars) and above-average Clarity (6 bars). GBP/NZD is expected to rise further inside this Triangle – 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 lying between the key support level 1.8625 (which formed the daily Japanese candlestick reversal pattern Hammer in December) and the lower daily Bollinger Band. The proximity of this support area increases the probability GBP/NZD will continue to rise inside this daily Triangle.