Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the hourly key support level 0.8590 chart pattern, which was previously identified by Autochartist. Autochartist rates the significance of this support level at the 3-bar level – which reflects three earlier reversals from this price level. EUR/GBP is expected to fall toward the forecast price 0.8549.

As can be seen from the daily EUR/GBP chart below – the pair earlier reversed down from the major resistance level 0.8670 (which has been reversing the price strongly from June), standing close to the upper daily Bollinger Band. The proximity of this resistance level adds to the probability EUR/GBP will continue to fall toward the forecast price 0.8549.