By: Dima Chernovolov
EUR/GBP continues to fall in the direction of the hourly Key Support level 0.8950 which was earlier identified by Autochartist. Autochartist rates the strength of this Key Support level at the 3-bar level – which is the result of the 3 recent upward reversals from this price level. EUR/GBP is expected to fall further toward the Key Support level 0.8950 – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the monthly EUR/GBP chart below, the price recently reversed down from the key resistance area lying between the multi-month resistance level 0.9050 and the upper monthly Bollinger Band. The proximity of this resistance area increases to the probability EUR/GBP will continue to fall in the direction of the Key Support level 0.8950.