Daily Forex Update: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to fall inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 47bar level – which is the result of the sharp Initial Trend (9 bars), above-average Uniformity (6 bars) and higher Uniformity (7 bars). EUR/GBP is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the major resistance area shown below.
As can be seen from the weekly EUR/GBP below, the pair is currency moving inside the sharp weekly downward impulse wave which started earlier from the key resistance area lying between the powerful resistance level 0.9060 and the upper weekly Bollinger Band. The pair recently broke the support area surrounding the support level 0.8820. This price level is acting as strong resistance after it was broken. The proximity of this resistance level increases the probability EUR/GBP will continue to fall inside this Down Channel.
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