Trade of the Day: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to fall inside the 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), strong Uniformity (8 bars) and lower Clarity (4 bars). EUR/GBP is expected to fall further inside this Up Channel.
As can be seen from the daily EUR/GBP chart below – the price earlier reversed down from the resistance area located between the key resistance level 0.8650 (which has been reversing the price from the end of May) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability EUR/GBP will continue to fall inside this Up Channel.