HomeContributorsTechnical AnalysisEUR/GBP 4H Chart: Two Scenarios Likely

EUR/GBP 4H Chart: Two Scenarios Likely

The common European currency has declined by 142 basis points or 1.65% in value against the British Pound since January 15. The decline began after the currency pair tested the upper boundary of a descending channel pattern at 0.8580.

The exchange rate is currently trading near a resistance cluster formed by the weekly and the monthly PPs at 0.8456.

If the resistance cluster holds, a decline towards a psychological level at 0.8300 could be expected.

However, if the EUR/GBP pair breaks the resistance cluster, bullish traders will drive the currency exchange rate towards the 0.8630 area during the following trading sessions.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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