By: Dima Chernovolov
GBP/NZD continues to rise inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the above-average Initial Trend and Uniformity (6 bars) and below-average Clarity (4 bars). GBP/NZD is expected to rise further inside this Down Channel.
As can be seen from the daily GBP/NZD chart below – the pair earlier reversed up from the support area located between the long-term support level 1.8770 (which stopped the sharp downtrend in April) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increase the probability GBP/NZD will continue to rise inside this Down Channel.