EUR/GBP 4H Chart: Channel Down

The Euro is still trading inside the boundaries of the channel down pattern against the British Pound, even though the exchange rate has somewhat rebounded in the past several weeks. Moreover, the EUR/GBP is currently approaching the upper trend-line of the pattern, which is still strengthened by this week's resistance, namely the weekly R2 at 0.7279. The short-term outlook is strongly positive, with 4H indicators sharing this view. On the other hand, daily and weekly studies assume the 19-nation currency will resume falling in the medium-term. Most likely, the downward momentum will be created by the pattern' resistance at 0.7294. Moreover, market sentiment is bearish (59%) at the moment.