By: Dima Chernovolov
EUR/GBP continues to fall inside the hourly Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 7-bar level – which reflects the slow Initial Trend (2 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). EUR/GBP is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the major resistance area highlighted below.
As can be seen from the weekly EUR/GBP below, the top of this Falling Wedge formed when the pair reversed down from the strong resistance area located between the key resistance level 0.9100 (multi-month high from August) and the upper weekly Bollinger Band. If the price closes this week near the active levels it will form the weekly Falling Star. The proximity of this resistance area increases the probability EUR/GBP will continue to fall inside this Falling Wedge.
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