Trade of the Day: EUR/GBP
By: Dima Chernovolov
EUR/GBP continues to fall inside the 30-minue Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rated the quality of this Down Channel at the 8-bar level – which reflects the sharp Initial Trend (10 bars), below-average Uniformity and Clarity (both rated at the 8 bar level). EUR/GBP is expected to fall further inside this Down Channel.
As can be seen from the daily EUR/GBP chart below – the pair earlier broke the support area lying between the key support level 0.8400 (which has been reversing the price from the middle of May) and the 61.8% Fibonacci correction of the upward price impulse from last March. This price zone is acting as the resistance area after it was broken. The proximity of this resistance area increases the probability EUR/GBP will continue to fall inside this Up Channel.