By: Dima Chernovolov
EUR/GBP continues to rise inside the 4-hour Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the slow Initial Trend (4 bars), significant Uniformity (7 bars) and strong Clarity (9 bars). EUR/GBP is expected to rise further inside this Rising Wedge.
As can be seen from the weekly EUR/GBP chart below – the pair earlier broke above the powerful multi-month resistance level 0.8720 (which has been reversing the price from the start of 2021). This price level is acting as the strong support after it was broken. The proximity of this support level adds to the probability EUR/GBP will continue to rise inside this Rising Wedge.