Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP recently broke the 4-hour Descending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 7-bar level – which is the result of the slow Initial Trend (2 bars), significant Uniformity (7 bars) and above-average Clarity (6 bars). EUR/GBP is expected to fall toward the forecast price 0.8731.

As can be seen from the daily EUR/GBP chart below – the pair earlier broke the support area located between the key support resistance level 0.8780 (which has been reversing the price from the middle of March) and the 61.8% Fibonacci correction of the upward correction from last month. This area is acting as the resistance area after it was broken. The proximity of this resistance adds to the probability EUR/GBP will continue to fall toward the forecast price 0.8731.