Trade of the Day: EUR/GBP

EUR/GBP continues to rise inside the daily Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the below-average Initial Trend (4 bars) and significant Uniformity and Clarity (7 bars). EUR/GBP is expected to rise further inside this Falling Wedge.

As can be seen from the daily EUR/GBP chart below – the pair earlier reversed up with the daily Bullish Engulfing from the key support level 0.8520 (previous monthly low from June) strengthened by the lower daily Bollinger Band. The proximity of this support level and the clear bullish divergence on the daily Stochastic indicator increase the probability EUR/GBP will continue to rise inside this Falling Wedge.