Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the hourly Ascending Triangle chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 7-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and substantial Clarity (8 bars). EUR/GBP is expected to rise toward the forecast price 0.8973 – in line with the earlier upward reversal from support area shown below.

As can be seen from the daily EUR/GBP chart below, the pair recently reversed up from the support area located between the powerful support level 0.8865, lower daily Bollinger Band and the 61.8% Fibonacci correction of the previous sharp upward impulse from May. The proximity of this support area increases the probability EUR/GBP will continue to rise toward the forecast price 0.8973.