Trade of the Day: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to fall inside the hourly Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which is the result of the above-average Initial Trend 6 bars) and significant Uniformity (7 bars). EUR/GBP is expected to fall further inside this Triangle.
As can be seen from the daily EUR/GBP chart below – the price earlier reversed down from the resistance area located between the pivotal resistance level 0.8600 (which has been reversing the pair from the start of September), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from the start of April. The proximity of this area adds to the probability EUR/GBP will continue to fall inside this Triangle.