By: Dima Chernovolov
GBP/NZD recently broke the 4-hour Triangle chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and significant Clarity (8 bars). GBP/NZD is expected to rise toward the forecast price 2.0294 – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily GBP/NZD chart below, the pair earlier reversed up from the support area lying between the key round support level 2.000 (former monthly high from May and September), lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous upward impulse from October. The proximity of this support area increases the probability GBP/NZD will continue to rise toward the forecast price 2.0294