By: Dima Chernovolov
EUR/GBP recently broke the hourly Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the strong Initial Trend (7 bars), low Uniformity (1 bar) and substantial Clarity (8 bars). EUR/GBP is expected to fall toward the forecast price 0.8540 – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily EUR/GBP chart below – the price earlier reversed down from the resistance area lying between the pivotal resistance level 0.8580 (which has been reversing the price from November), upper daily Bollinger Band and the 38.2% Fibonacci correction of the previous downward impulse from October. The proximity of this resistance area increases the probability EUR/GBP will continue to fall toward the forecast price 0.8540.