EUR/GBP Price Forecast: Shallow rising channel extends
|- EUR/GBP continues rising in a shallow channel.
- It will probably extend unless there is a breakout one way or another.
EUR/GBP is extending a shallow ascending recovery channel that began at the August 30 lows. The overall short-term trend is unclear – both positive and negative signs complicate the picture.
EUR/GBP 4-hour Chart
EUR/GBP continues respecting the guard rails of the channel, and in the absence of a breakout in either direction, it will probably continue climbing steadily higher.
A close above the 0.8464 high (September 11 high) would be required to confirm an upside breakout from the channel. Such a move could be expected to reach roughly 0.8477, the 0.618 Fibonacci (Fib) extension of the height of the channel extrapolated higher.
Alternatively, 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.
Bullish signs are that the price is in a rising channel, that it has broken all the way through the previous falling channel, and the exhaustion break during August (orange shaded circle) when it accelerated to the downside, which is a reversal sign.
The main bearish sign is the relative shallowness of the rising channel in comparison to the much steeper previous bear move.
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.