EUR/GBP broke its two-year low and has continued to decrease forming a channel down pattern on the 4H chart. The formation has 53% quality along with 46% magnitude within 83 bars.
The price was consolidated in a downward channel touching the pattern's lines many times, but it still is decreasing inside the pattern borders. Present bias on the 4H and daily timeframes is neutral while indicators on weekly timeframe give bearish signals. Bears may focus their attention on the pattern's 0.8005 level test. If the price rebounds, the initial target for short traders could be around 0.7930, where the pattern's support level resides.
The Stochastic and RSI indicators touched their critical levels at 20% and 30% respectively, which leads to the possible bullish breakout. If the price breaks the resistance level at 0.8005, the first target for long traders could be around 0.8048, where the resistance level stands.