Trade of the Day: GBP/NZD

By: Dima Chernovolov

GBP/NZD continues to fall inside the 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the strong Initial Trend (10 bars), average Uniformity (5 bars) and significant Clarity (7 bars). GBP/NZD is expected to fall further inside this Up Channel.

As can be seen from the daily GBP/NZD chart below – the pair earlier reversed down from the key resistance area located between the strong resistance level 1.925 (which reversed the price in August), upper daily Bollinger Band, 100-day moving average and the 61.8% Fibonacci correction of the downward impulse from June. The proximity of this resistance area increases the probability GBP/NZD will continue to fall inside this Up Channel.