Trade of the Day: GBP/NZD
By: Dima Chernovolov
GBP/NZD continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity (8 bars), and near-maximum Clarity (9 bars). GBP/NZD is expected to fall further inside this Down Channel – in line with the recent downward reversal from the resistance area highlighted below.
As can be seen from the daily GBP/AUD chart below – the pair recently reversed up from the support area lying between the key support level 1.9600 (which also previously reversed the price sharply in March), lower daily Bollinger Band and the 61.8% Fibonacci retracement of the pervious upward impulse from December. The proximity of this support area increases the probability GBP/AUD will continue to rise inside this Down Channel.