EUR/GBP 1H Chart: Channel Up

Although just recently we have recognised that EUR/GBP is trading within the bearish channel, we should also consider a possibility that the former hypothesis does not hold. Then we may assume that a recently initiated channel up will eventually take its place. For this to happen the single European currency will have to break a major down-trend resistance line at 0.8419, which has been in force since the end of October. However, at the same time the currency pair should preserve intactness of a different trend-line—the one that connects the lows charted since Nov 7. At present it stands near 0.8381 and is reinforced by the daily PP and the 200-hour SMA.