Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the key support level 0.8406 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 0.8383.

As can be seen from the daily EUR/GBP chart below – the pair previously reversed down from the resistance area located between the key resistance level 0.8455 (former support from December) and the 50% Fibonacci correction of the previous downward impulse from December. The proximity of this resistance area and the clear daily downtrend increase the probability EUR/GBP will continue to fall toward the forecast price 0.8383.