By: Dima Chernovolov
GBP/NZD continues to fall inside the 30-minute down channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this down channel at the 5-bar level – which reflects the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and medium Clarity (5 bars). GBP/NZD is expected to fall further inside this down channel – in line with the earlier breakout of the key support level shown below.
As can be seen from the daily GBP/NZD chart below – the pair recently broke the key support level 1.9150 (which reversed the prices a few times at the end of June). This price level is acting as the strong resistance after it was broken. The proximity of this resistance level and the strength of the active downtrend increase the probability GBP/NZD will continue to fall inside this down channel.