Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to rise inside the 15-minute Up Channel chart pattern which was identified recently by Autochartist. Autochartist measures the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), low Uniformity (3 bars) and strong Clarity (8 bars). EUR/GBP is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily EUR/GBP chart below, the price earlier reversed up from the support area located between the support level 0.8530 (which reversed the price earlier this month) and the lower daily Bollinger Band).  The proximity of this support area increases the probability EUR/GBP will continue to rise inside this Up Channel.