Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the hourly key resistance level 0.8574. Autochartist rates the Significance of this key resistance level at the 6-bar level – which is the result of 6 earleir price reversals from this price level. EUR/GBP is expected to rise further toward the forecast price 0.8603 – in line with the earlier upward reversal from the support area show below.

As can be seen from the daily EUR/GBP chart below – the price earlier reversed up from the key support area located between the powerful support level 0.8540 (which has been reversing the price from the end for February) and the lower daily Bollinger Band. The proximity of this support zone and the bullish divergence on the daily Stochastic indicator increase the probability EUR/GBP will continue to rise toward the forecast price 0.8603.