Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to fall inside the hourly Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), higher Uniformity (3 bars) and strong Clarity (8 bars). EUR/GBP is expected to fall further inside this Down Channel.

As can be seen from the daily EUR/GBP chart below – the price earlier broke below the key support level 0.8415 (which reversed the price sharply earlier this month). This price level is acting as the resistance after it was broken. The proximity of this resistance level increase the probability EUR/GBP will continue fall inside this Down Channel.