Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to fall inside the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the below-average Initial Trend (4 bars), low Uniformity (3 bars) and medium Clarity (5 bars). 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 reversed down from the resistance area lying between the resistance level 0.8820 (upper border of the daily Rectangle chart pattern), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from September. The pair is currently approaching the lower border of the aforementioned daily Rectangle, which adds to the probability EUR/GBP will continue fall inside this hourly Down Channel.