Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the key resistance level 0.8549 which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 5-bar level – which is the result of the five previous price reversals from this price level. EUR/GBP is expected to continue to rise toward the forecast price 0.8580.

As can be seen from the daily EUR/GBP chart below – the pair earlier reversed up from the support area located between the support level 0.8500 (which has been reversing the price from April),  support trendline of the daily down channel from the end of April and the lower daily Bollinger band.. The proximity of this support zone adds to the probability EUR/GBP will continue rise toward the forecast price 0.8580.