Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the daily 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 sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and stronger Clarity (8 bars). EUR/GBP is expected to rise toward the forecast price 0,9174.

As can be seen from the following chart, the breakout of the above Down Channel coincided with the breakout of the longer-term daily Triangle from last year. Autochartist set the forecast price for this breakout at 0,9364. Two different-type and different-length chart pattern breakouts increase the chances the pair will continue to rise in the coming trading sessions.