Daily Forex Update: EUR/GBP

By: Dima Chernovolov

EUR/GBP 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 reflects the average Initial Trend (5 bars), higher Uniformity (6 bars) and significant Clarity (7 bars). EUR/GBP is expected to fall further inside this Down Channel – in line with the earlier sharp downward reversal from the key resistance zone shown below.

As can be seen from the daily EUR/GBP below, the pair recently reversed down sharply from the powerful resistance zone lying between the multi-month resistance level 0.9100 (which also stopped the previous sharp upward impulse in August) and the upper daily Bollinger Band. The proximity of this resistance zone increases the probability EUR/GBP will continue to fall inside this Down Channel.

To subscribe to the e-mail alerts feature is quick and easy. Log into the Autochartist platform, click on ‘Alerts & Messaging’, enter your email address, select the market you want covered, select your language, and the time you want to get your report, and you’re done! You will now receive a quick morning technical outlook of the markets.

For further information on this and other Autochartist products visit www.autochartist.com