EUR/GBP Price Forecast: A bearish breakout from a shallow rising channel
- EUR/GBP is breaking out below the lower line of a shallow rising channel.
- If the break holds, the pair will probably continue falling.
EUR/GBP pierces below the lower channel line of its rising channel in a breakout attempt lower.
It is possible the bearish bias evident during the steep fall in August is reasserting itself. A close below 0.8423 (September 10 low) would pave the way for further weakness to a downside target at 0.8406, the 0.618 Fib extension lower. Below that lies support at 0.8385.
EUR/GBP 4-hour Chart
Alternatively, if the break proves false, there is a chance the shallow rising channel could extend, with circa 0.8460 as a possible upside target.
A close above the 0.8464 high (September 11 high) would be required to confirm an upside breakout from the channel. Such a move might reach about 0.8477, the 0.618 Fibonacci (Fib) extension of the height of the channel extrapolated higher.
Author
Joaquin Monfort
FXStreet
Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.
