EUR/GBP 4H Chart: Channel Up

A losing streak of the UK currency versus the Euro has been taking place since the beginning of December. However, last week the bears took over the market and were able to send EUR/GBP into correction territory. Short-term downside risks are significant, as projected by 4H technical indicators. Thus, we are looking at monthly R1 and 100-period SMA near 0.7520, because a decline below them will pave the way for more losses down to the pattern's lower support line at 0.7479. From this level, or even earlier from the mentioned monthly R1, another up-leg will be expected. The Euro is heavily oversold in the SWFX market (71% of all positions are short), meaning more gains are still to come.