By: Dima Chernovolov
EUR/GBP recently broke the 4-hour Pennant chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Pennant at the 5-bar level – which is the result of the strong Initial Trend (10 bars), below-average Uniformity (4 bars) and stronger clarity (6 bars). EUR/GBP is expected to fall toward the forecast price 0.8392.
As can be seen from the daily EUR/GBP chart below – the price earlier reversed down from the resistance area set between the pivotal resistance level 0.8460 (which has been reversing the price from last December), the upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from the end of 2021. The proximity of this resistance zone adds to the probability EUR/GBP will continue to fall toward the forecast price 0.8392.