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Despite the fact that the Euro/Pound currency pair has already been developing in a downtrend since the middle of January, the pace of cross's decline is most likely going to strengthen in the near-term.
Recently, the Euro has rebounded slightly and neared the upper boundary of the bearish channel, which has a chance of sending the common currency back to the south. 57% of SWFX market participants which are holding short opened positions vote in favour of this scenario. Moreover, a strong resistance is currently created by 100-period SMA and weekly R1 at 0.7220. Meanwhile, 4H technical indicators suggest the bullish break-out is still possible to take place.
© Dukascopy Bank SA