EUR/GBP recently broke the 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the sharp Initial Trend (6 bars), low Uniformity (3 bars) and medium Clarity (5 bars). EUR/GBP is expected to fall toward the forecast price 0.8548.
As can be seen from the daily EUR/GBP chart below – the pair earlier reversed down from the resistance area located between the pivotal resistance level 0.8635 (which has been reversing the price from the start of June, forming two daily Shooting Stars in June), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from May. The proximity of this resistance area and the clear daily downtrend add to the probability EUR/GBP will continue to fall toward the forecast price 0.8548.