The price action of the EURGBP is currently attempting a breakout above the upper limit of the descending channel on the reinvigorated bullish bias. The euro was bolstered today following the release of the better-than-expected German ifo business climate numbers for February.
The preceding downtrend, taking the form of a 1-5 Elliott impulse wave pattern, was completed at the major support level at 0.83120, which has already prompted several bullish rebounds recently.
If the breakout is successful, the price action would then test the 61.8 per cent Fibonacci retracement level at 0.83592. The next target would be the 38.2 per cent Fibonacci at 0.84048.