Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to rise inside the 15-minute Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity and Clarity (5 bars). EUR/GBP is expected to rise further inside this Rising Wedge.

As can be seen from the daily EUR/GBP chart below – the pair earlier broke the resistance area located between the key resistance level 0.8820 (previous monthly high from November) and the 38.2% Fibonacci correction of the downward impulse from September. This price area is acting as the support zone after it was broken. The proximity of this support area increases the probability EUR/GBP will continue to rise inside this Rising Wedge.