Daily Forex Update: EUR/GBP

EUR/GBP has recently completed the Clear Triangle chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is measured at the 5 bar level, as a consequence of the low Initial Trend (rated at the 2 bar level), above-average Uniformity (6 bars) and higher Clarity (7 bars). This chart pattern continues the longer-term uptrend visible on the weekly EUR/GBP charts. The bottom of this Triangle (point C on the chart below) formed when the pair reversed up from the combined support area made out of the strong horizontal support level 0.8200 (which had previously reversed the pair up in August of 2010) and the 50% Fibonacci Retracement of the preceding sharp weekly upward price impulse from the start of 2007, as is shown on the second chart below. The pair is expected to continue upward movement in the direction of the Forecast Price 0.8615.

The following weekly EUR/GBP chart shows the aforementioned technical price levels: