Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to fall inside the hourly Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 5-bar level – which is the result of the above-average Initial Trend (6 bars), medium Uniformity (5 bars) and lower Clarity (4 bars). EUR/GBP is expected to fall further inside this Triangle – in line with the earlier upward reversal from the resistance area shown below.

As can be seen from the daily EUR/GBP chart below – the price earlier reversed down with the daily Shooting Star from the resistance area located between the resistance level 0.8700, resistance trendline of the daily down channel from December and the 38.2% Fibonacci correction of the downward impulse from January. The proximity of this resistance area increases the probability EUR/GBP will continue to fall inside this Triangle.