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.
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