Trade of the Day: GBP/NZD

By: Dima Chernovolov

GBP/NZD continues to fall inside the 30-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), higher Uniformity (6 bars), and strong Clarity (8 bars). GBP/NZD expected to fall further inside this Falling Wedge.

As can be seen from the daily GBP/NZD chart below – the pair earlier broke the support area lying at the intersection of the round support level 2.000 (which has been reversing the pair from the start of January) and the 50% Fibonacci correction of the upward impulse from December. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area increases the probability GBP/NZD will continue to fall inside this Falling Wedge.

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