Daily Forex Update: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to fall inside the uniform Down Channel which was recently identified by Autochartist on the 30-minute charts. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (one bar), significant Uniformity (8 bars) and lower Clarity (2 bars). EUR/GBP is expected to fall further inside this Down Channel – in line with the earlier breakout of the strong support area shown below.

As can be seen from the daily EUR/GBP chart below, the price earlier broke the combined support area lying at the intersection of the round support level 0.9000, 50% Fibonacci correction of the upward impulse from July and the support trendlines of the 2 daily up channels from May and August Thus price area is acting as 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.

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