EUR/GBP 4H Chart: Channel Down

The second most traded cross of the Sterling, the one with the Euro, has been intensively losing ground since the second week of October. Overall decline amounts to 400 pips so far. Many market signals suggest that the downward tendency of the single European currency will be in place in the short term. At first, 4H and daily aggregate technical indicators are pointing to the south. Moreover, the majority of SWFX market participants are short on EUR/GBP, namely 57% of them. A decline, however, can be halted by demand at 0.7008 (monthly S1), with additional support offered by the pattern's trend-line at 0.6968. There we may see a temporary recovery in the pair's value in the direction of 0.71.