EUR/GBP 4H Chart: Channel Up

While the Euro/Sterling  pair formed the same bullish channel pattern as the previous cross, its near-term outlook seems to be more positive. At first, the Euro managed to appreciate as high as 0.7130 by Thursday midday, meaning that it is now hovering above weekly PP, 55 and 200-period SMAs. Daily technical indicators assume the pair will move further to the north, as an immediate target for bulls is represented by the monthly R1 at 0.7193. However, this resistance can become crucial in  terms of determining the pair's future. Weekly technical indicators are bearish, while 64% of all traders are holding short open positions. Thus, a recovery can be put at risk as close as 70 pips above the spot price.