Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the support level 0.8342 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 4-bar level – which is the result of the four previous price reversals from this price level. EUR/GBP is expected to continue to fall toward the forecast price 0.8302.

As can be seen from the daily EUR/GBP chart below – the pair earlier reversed down from the resistance zone lying between the key resistance level 0.8385 (former monthly low from November), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from December .The proximity of this resistance zone and the clear downtrend increase the probability EUR/GBP will continue to fall toward the forecast price 0.8302.