Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to rise after the earlier breakout of the 30-minute Key Resistance level 0,8907 which was recently identified by Autochartist. Autochartist rates the quality of this Key Resistance level at the 4-bar level – which is the result of the 4 previous reversals from this resistance level. EUR/GBP expected to rise toward the forecast price 0,8924.

As can be seen from the daily EUR/GBP chart below – prior to the breakout of this resistance level the pair reversed up from the support area lying between the support level 0.8865 (monthly low from June), lower daily Bollinger Band and the 61,8% Fibonacci correction of the upward impulse from April. The proximity to this support area adds to the probability EUR/GBP will continue to rise toward the forecast price 0,8924.