EUR/GBP 4H Chart: Rising Wedge

At first It might look as if EUR/GBP is trading within two parallel trend-lines. However, we should be aware of a possibility that the currency pair might be forming a rising wedge pattern that implies a completely different scenario from the one assumed by the bullish channel.

Since the start of the pattern (Nov 29) the distance between the lines connecting the latest peaks and troughs contracted from 80 pips to 50. Moreover, while the near-tern technical indicators are mostly bullish, the longer-term perspective does not favour a rally (four studies are 'neutral' and four studies are giving ‘sell signals at the moment).