EUR/GBP 4H Chart: Channel Down

Although at the moment the down-trends that form the bearish channel seem to be weak due to a lack of confirmations, there is a good chance they may turn out to be significant later on.

Right now the lower falling line creates support at 0.8266 together with the weekly S2. Considering that recently the pair has failed to extend the rally beyond the 200-period SMA, we may expect EUR/GBP to test it in the nearest future. In case this demand area stays intact, then the Euro should start targeting the upper trend-line at 0.8565, though we should stay wary of the long-term moving average that proves to play a notable role in forming the chart.