Trade of the Day: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to fall after breaking the 4-hour Triangle chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Triangle at the 5-bar level – which reflects the medium Initial Trend and Uniformity (5 bars) and significant Clarity (7 bars). EUR/GBP is expected to fall toward the forecast price 0.9131.
As can be seen from the daily EUR/GBP chart below, the price earlier reversed down from the resistance area lying between the resistance level 0.9290, upper daily Bollinger Band and the resistance trendline of the wide up channel from April. The proximity of this resistance area adds to the probability EUR/GBP will continue to fall toward the forecast price 0.9131.