EUR/GBP Price Forecast: A Bearish Breakout From A Shallow Rising Channel

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 reaserting 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 if the height of the channel extrapolated higher.More By This Author:EUR/GBP Price Analysis: Selling Pressure Resumes And Buyers Give Up The 20-Day SMA USD/JPY Recovers A Few Pips After Refreshing YTD Low, Remains Heavily Offered Below 141.00 EUR/GBP Price Analysis: Bears Ease Their Grip, Buyers Still Remain Weak