Daily Forex Update: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to fall inside the clear 4-hour Down Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 5-bar level – which reflects the slow Initial Trend (one bar), medium Uniformity (5 bars) and strong Clarity (8 bars). EUR/GBP is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support area shown below.
As can be seen from the daily EUR/GBP chart below, the price earlier broke though the support area lying between the key support level 0.8850, support trendline from May and the 61.8% Fibonacci correction of the previous upward impulse from April. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone and the strength of the active daily impulse wave increase the probability EUR/GBP will continue to fall inside this Down Channel.
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