Trade of the Day: GBP/NZD
By: Dima Chernovolov
GBP/NZD continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist measures the quality of this Up Channel at the 6 -bar level – which is the result of the medium Initial Trend (5 bars), lower Uniformity (4 bars), and strong Clarity (8 bars). GBP/NZD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the key support zone shown below.
As can be seen from the daily GBP/NZD chart below – the bottom of this Up Channel formed when the pair reversed up from support area located between the round support level 2.000 (which has been reversing the price from the start of February), lower daily Bollinger Band and the 61.8% Fibonacci correction of the previous sharp upward impulse from December. The proximity of this support zone adds to the probability GBP/NZD will continue to rise inside this Up Channel.