Trade of the Day: EUR/GBP

By: Dima Chernovolov
EUR/GBP continues to fall inside the clear 30-minute Falling Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), higher Uniformity (6 bars) and medium Clarity (5 bars). EUR/GBP is expected to fall further inside this chart pattern.

As can be seen from the daily EUR/GBP chart below – the price earlier broke the support area located between the key support level 0.8310 (which has been reversing the price from March) and the 61.8% Fibonacci correction of the earlier sharp upward correction from March. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area increases the probability EUR/GBP will continue to fall inside this Falling Wedge.