EUR/GBP Price Forecast: Rising in a shallow recovery channel
|- EUR/GBP is rising in a shallow channel since it bottomed out in late August.
- The trend is now probably sideways – possibly even bullish, with odds favoring more upside and a reversal.
EUR/GBP continues steadily recovering in a shallow channel. The dominant short-term downtrend in August has ended and the pair has entered a sideways trend. It is even possible it could be at the start of an uptrend.
EUR/GBP 4-hour Chart
EUR/GBP will probably continue its shallow rising channel higher. An acceleration to the upside and decisive breakout above the upper channel line could lead to a move up to a target at 0.8468. The odds are probably now marginally in favor of more upside. A decisive break would be one accompanied by a long green candle that breaks above the level and closes near its high, or three green candles in a row.
The Relative Strength Index (RSI) momentum indicator is rising in line with price, indicating mild bullish confidence.
It is still possible the August downtrend could resume, with a decisive breakdown below the lower channel line probably leading to a fall to a target at 0.8400.
The pair was falling in a descending channel during August. The downtrend accelerated and temporarily broke out of the bottom of the channel – a sign of exhaustion. After bottoming out it began a shallow recovery which continues evolving.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.