The EUR/GBP pair is extending a shallow ascending recovery channel that began at the August 30 lows. While the short-term trend remains uncertain, the pair is likely to continue climbing steadily higher within the channel’s boundaries.
Potential Upward Breakout
A close above the 0.8464 high could confirm an upside breakout from the channel. This would suggest a continuation of the upward trend, with a potential target of 0.8477 based on the 0.618 Fibonacci extension.
Potential Downward Breakout
A close below 0.8423 could pave the way for further weakness, with a downside target of 0.8406 based on the 0.618 Fibonacci extension.
EUR/GBP Technical Analysis
While the overall trend is bullish, the rising channel is relatively shallow compared to the previous bear move. This suggests that the upward momentum may be limited.