EUR/GBP 1H Chart: Channel Down

Although the channel down on EUR/GBP chart is only 80 bars long, there are good reasons to suspect that the trend-lines forming it will be able to withstand up and down swings in the nearest future. If this is the case, then a resistance area at 0.8692/77 (falling trend-line; 200-hour SMA; daily R1) will not let the price to step any higher, but instead will initiate a decline that in turn is expected to stop only around 0.86. On its way there the pair will need to break some of the daily pivots, the ones that are currently located at 0.8655 and 0.8637. In the meantime, technical indicators do not favour materialisation of such a scenario, they are giving ‘buy' signals.