By: Dima Chernovolov
GBP/NZD continues to fall inside the daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Up Channel at the 5-bar level – which is the result of the average Initial Trend (5 bar), below-average Uniformity (4 bars) and higher Clarity (6 bars). GBP/NZD is expected to fall further inside this chart pattern – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily GBP/NZD below, the price earlier reversed down with the daily Japanese candlesticks reversal pattern Shooting Star from the resistance area lying between the round resistance level 2.0000 and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/NZD will continue to fall inside this Up Channel.