Trade of the Day: EUR/GBP

By: Dima Chernovolov

EUR/GBP continues to rise inside the 15-minute Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/GBP expected to rise further inside this chart pattern – 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 pair earlier reversed up sharply from the powerful support area lying between the major support level 0.8300 (which stopped the sharp downtrend in December) and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/GBP will continue to rise inside this Rising Wedge.