EURGBP has been creating a bearish sloping channel since October after the peak at the 0.9030 resistance level. However, the pair is on track to post its second bullish week after the rebound from the five-month low at 0.8690.
Looking at the 4-hour chart, in the short-term timeframe, the price is holding below the 0.8890 strong obstacle, while it is above the three simple moving averages (50, 100 and 200). Additionally, the pair hit the 23.6% Fibonacci retracement level with the high at 0.9305 and the low at 0.8690 on Wednesday and the next immediate resistance barrier to have in mind is 0.8890.
On the reverse side, a slip below the aforementioned Fibonacci obstacle and a drop below 0.8827, which coincides with the 50-SMA in the short-term chart, could push the price towards the 0.8790 support level.
Short-term momentum is weak and the MACD oscillator is endorsing the scenario for further bearish movement as it lies below its trigger line. Although, the RSI indicator is pointing to the upside and is standing near the 50 level.
Traders may be in confusion as the tendency is not clear yet in EURGBP as it is trading in the middle of the sideways channel
