Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to rise inside the daily Up Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), near-maximum Uniformity (9 bars) and above-average Clarity (6 bars). EUR/GBP is expected to rise further inside this Up Channel – in line with the earlier breakout of the daily down channel shown below.

As can be seen from the daily EUR/GBP chart below, the price earlier broke the resistance trendline of the daily down channel from the start of September – which added to the bullish pressure on this currency pair. This trendline is acting as the support trendline after it was broken. The proximity of this trendline and the support zone near 0.9030 increase the probability EUR/GBP will continue to rise inside this Up Channel.