Daily Forex Update: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to rise inside the uniform Triangle chart pattern which was recently identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (one bar), near-maximum Uniformity (9 bars) and significant Clarity (7 bars). EUR/GBP is expected to rise further inside this Triangle – in line with the earlier sharp upward reversal from the support area highlighted below.
As can be seen from the daily EUR/GBP chart below, the bottom of this Triangle formed when the price reversed up with the daily Morning Star from the strong support area lying between the multi-month support level 0.8750 (which has been reversing the pair from July), lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward price impulse from May. The proximity of this support area adds to the probability EUR/GBP will continue to rise inside this Triangle.
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