Trade of the Day: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to rise inside the 4-hour Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 5-bar level – which is the result of the slow Initial Trend (1 bar), near-maximum Uniformity (9 bars) and lower Clarity (4 bars). EUR/GBP is expected to rise further inside this Ascending Triangle – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily EUR/GBP chart below, the price earlier reversed up from the support area lying between the key support level 0.9030 (which previously reversed the price in September), lower daily Bollinger Band and the 61.8% Fibonacci correction of the previous upward impulse from September. The proximity of this support area adds to the probability EUR/GBP will continue to rise inside this Ascending Triangle.