Wednesday, October 28

EUR/GBP Price Analysis: Charting a bearish channel breakout

  • EUR/GBP is teasing a breakout from a four-week bearish channel. 
  • Key indicator is aligned in favor of the bulls. 

EUR/GBP is breaking out of a bearish channel represented by trendlines connecting Sept. 11 and Sept. 23 highs and Sept. 17 and Sept. 28 lows.

At press time, the pair is trading near 0.9080, representing a 0.15% gain on the day. Notably, the pair is sitting well above the upper end of the falling channel, currently at 0.9062.

A close above that level would confirm a bullish breakout and open the doors for 0.9162 (Oct. 7 high). Meanwhile, the Oct. 14 low of 0.9007 is the level to beat for the bears.

The breakout looks likely as the daily MACD histogram is reporting a bullish divergence.

Daily chart

Trend: Bullish

Technical levels

Credit: FX Street

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