Daily Forex Update: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to fall inside the well-formed Down Channel chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Down Channel at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), and high Uniformity and Clarity (rated at the 8 and 9 bar levels respectively). EUR/GBP is expected to continue to fall inside this Down Channel – in line with the earlier breakout of the key support level shown below.
As you can see from the daily EUR/GBP chart below, the price earlier broke though the combined support area lying between the support level 0.9140, support trendline of the daily up channel from July and the 50% Fibonacci correction of the upward impulse from August. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone increases the probability EUR/GBP will continue to fall inside this Down Channel.
As you can see from the daily EUR/GBP chart below, the price earlier broke though the combined support area lying between the support level 0.9140, support trendline of the daily up channel from July and the 50% Fibonacci correction of the upward impulse from August. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone increases the probability EUR/GBP will continue to fall inside this Down Channel.
