- EUR/GBP bears are rattling the cage above 4-hour support.
- A breakout could be on the cards so long as cable holds above old resistance.
EUR/GBP is bearish towards the prior weekly lows as the pound continues to firm and cracks a significant technical resistance across the USD charts:
Weekly chart
-637485143971810114.png)
From the weekly perspective, the downtrend is strong.
The previous candle was a strong bearish close which gives rise to the prospects of a downwards continuation this week for another bearish close.
Daily chart
-637485144388392017.png)
We have seen a significant correction on the daily chart in a 50% mean reversion, knocking on the door of a 61.8% Fibonacci retracement.
-637485151214264093.png)
4-hour chart
-637485144736063594.png)
However, there is still work to be done on the lower time frames as the price is stuck above support structure.
On a break and restest, an optimal entry can be placed from a sell limit at resistance for a higher probability trade set up and a favourable risk to reward ratio.
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