EUR/GBP Price Analysis: Charting a bearish channel breakout

EUR/GBP is teasing a breakout from a four-week bearish channel.
Key indicator is aligned in favor of the bulls.

Omkar Godbole FXStreet Contributor

EUR/GBP is breaking out of a bearish channel represented by trendlines connecting Sept. 11 and Sept. 23 highs and Sept. 17 and Sept. 28 lows.

At press time, the pair is trading near 0.9080, representing a 0.15% gain on the day. Notably, the pair is sitting well above the upper end of the falling channel, currently at 0.9062.

A close above that level would confirm a bullish breakout and open the doors for 0.9162 (Oct. 7 high). Meanwhile, the Oct. 14 low of 0.9007 is the level to beat for the bears.

The breakout looks likely as the daily MACD histogram is reporting a bullish divergence.

Daily chart

Trend: Bullish

Technical levels

EUR/GBP

Overview
Today last price	0.908
Today Daily Change	0.0016
Today Daily Change %	0.18
Today daily open	0.9064

Trends
Daily SMA20	0.9106
Daily SMA50	0.9061
Daily SMA100	0.9039
Daily SMA200	0.8875

Levels
Previous Daily High	0.9078
Previous Daily Low	0.9016
Previous Weekly High	0.9162
Previous Weekly Low	0.9054
Previous Monthly High	0.9292
Previous Monthly Low	0.8866
Daily Fibonacci 38.2%	0.9054
Daily Fibonacci 61.8%	0.904
Daily Pivot Point S1	0.9028
Daily Pivot Point S2	0.8992
Daily Pivot Point S3	0.8967
Daily Pivot Point R1	0.9089
Daily Pivot Point R2	0.9114
Daily Pivot Point R3	0.915

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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