Trade of the Day: GBP/NZD
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 8-bar level – which reflects the sharp Initial Trend (10 bars), significant Uniformity (8 bars) and lower Clarity (6 bars). GBP/NZD is expected to rise toward the forecast price 1.9566 – in line with the earlier breakout of the key resistance area shown below.
As can be seen from the daily GBP/NZD chart below, the price earlier broke the resistance area lying between the key resistance level 1.9400 (which has been reversing the price from June) and the 61.8% Fibonacci correction of the previous downward impulse (1) from May. This price area is acting as support zone after it was broken. The proximity of this support area increases the probability GBP/NZD will continue to rise toward the forecast price 1.9566.