Trade of the Day: EUR/GBP

By: Dima Chernovolov
EUR/GBP continues to rise inside 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 reflects the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and above-average Clarity (6 bars). EUR/GBP is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area highlighted below.

As can be seen from the daily EUR/GBP chart below – the pair recently broke the resistance area lying between the pivotal resistance level 0.9060 (former monthly high from May) and the 50% Fibonacci correction of the previous downward correction from the middle of May. This price area is acting as the support zone after it was broken. The proximity of this support area increases the probability EUR/GBP will continue to rise inside this Up Channel.