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  • EUR/GBP has charted a bearish channel over past two months. 
  • The pair has hit multi-week low and risks falling toward deeper supports. 

EUR/GBP is currently trading in the red at 0.8916, the lowest level since Nov. 12. 

The pair is trapped in a bearish channel represented by trendlines connecting Sept. 11 and Oct. 20 highs and Sept. 28 and Nov. 11 lows, as seen on the daily chart. 

A bullish Doji reversal pattern confirmed by Nov. 12’s move to 0.8994 had raised hopes for a channel breakout. However, the pullback to 0.8915 has invalidated the bullish Doji reversal and shifted risk in favor of a drop to September’s low of 0.8866. 

On the higher side, the channel resistance, currently at 0.9028 is the level to beat for the bulls. 

Daily chart

Trend: Bearish

Technical levels

 

Expert score

5

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