EUR/GBP has shown resilience as it bounces off the lower channel line of its rising channel, indicating a potential bullish bias in the short term. The chart reflects a gradual upward movement, suggesting the formation of a new uptrend.
EUR/GBP 4-hour Chart
The Moving Average Convergence Divergence (MACD) indicator remains above the zero line, signaling a mild bullish momentum. To confirm an upside breakout, a close above the 0.8464 high (September 11 high) is needed, with a potential target at 0.8477, the 0.618 Fibonacci extension.
While bullish signs currently outweigh bearish indicators, it’s important to note the relative shallowness of the rising channel compared to the previous bearish move. A close below 0.8423 (September 10 low) could lead to further downside towards 0.8406, the 0.618 Fib extension.
Analysis:
The EUR/GBP pair is showing signs of a potential uptrend, with the price bouncing off the lower channel line and gradually moving higher. The MACD indicator supports a bullish bias, but a close above the recent high is needed to confirm an upside breakout. Traders should watch for key levels for potential entry and exit points, considering both bullish and bearish scenarios.