Trade of the Day: GBP/NZD

By: Dima Chernovolov

GBP/NZD continues to fall inside the 15-minute Down Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which reflects the slow Initial Trend (1 bar), low Uniformity (2 bar) and significant Clarity (8 bars). GBP/NZD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the powerful resistance area shown below.

As can be seen from the daily GBP/NZD chart below, the pair earlier previously reversed down sharply from the powerful resistance area lying between the key round resistance level 2.000 (former monthly high from May) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/NZD will continue to fall inside this Down Channel.