EUR/GBP 4H Chart: Rectangle

The Euro has been broadly unchanged against the Pound since the last week of August. As a result of that, EUR/GBP managed to form a rectangle. Even though this pattern implies a confirmation to the downside, market signals are quite mixed at the moment. Among them, market sentiment is strongly negative with respect to this currency pair at the moment, as 70% of all trades are short. On the other hand, the pair is rebounding right now, as it has just risen above the weekly PP/55-period SMA at 0.7319/33. Moreover, daily technical indicators are positive. Therefore, we see the pair higher in the next 24 hours, but the pair's future is expected to be decided by a resistance at 0.7410/16.