Trade of the Day: EUR/GBP

EUR/GBP recently broke the hourly support level 0.8718, which was previously identified by Autochartist. The chart pattern indicates possible bearish price movement toward the target level 0.8694. The following are the optimal entry and stop-loss levels calculated by Autochartist:  entry at 0.8709 with the protective stop-loss at 0.8741.

As can be seen from the weekly EUR/GBP chart below – the pair earlier reversed down from the key resistance level 0.8740 (former strong support from the start of the year, acting as the resistance after it was broken in April). The proximity of this resistance level, upper weekly Bollinger Band and the overbought weekly Stochastic increase the likelihood the pair will continue to fall toward the target level 0.8694.