Daily Forex Update: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to fall inside the hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 9-bar level – which is the result of the strong Initial Trend (10 bars), above-average Uniformity (7 bars) and strong Clarity (9 bars). EUR/GBP is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the powerful resistance area shown below.

As can be seen from the weekly EUR/GBP chart below, the pair recently reversed down  from the major resistance area lying between the long-term resistance level 0.8950 (which stopped the previous upward correction in February), upper weekly Bollinger Band and the 50% Fibonacci correction of the weekly impulse from 2017. The proximity of this resistance area increases the probability EUR/GBP will continue to fall inside this Down Channel.

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