Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to rise in the direction of the key resistance level 0.8610, which was recently identified by Autochartist. Autochartist rates the quality of this resistance level at the 5-bar level – which is the result of the 5 earlier reversals from this price level. EUR/GBP is expected to rise toward the resistance level 0.8610.

As can be seen from the daily EUR/GBP chart below – the pair earlier reversed up from the key support level 0.8575 (former strong resistance level from July, which has been reversing the price from September), standing near the lower daily Bollinger Band. The proximity of this support level adds to the probability EUR/GBP will continue to rise toward the resistance level 0.8610.