I've been trading this pair long as can be seen in my previous posts.
Have a look at the bigger picture first:
I like to see at least a test of 0.80 for that upper channel line. However as long as price stays within the channel I consider this a consolidation. It is very likely that the Pound weakened due to some fear of UK leaving the EU. However I don't think that will happen which will strengthen the Pound at least short term against the Euro .
Whatever the fundamentals are, for now the technical's are key. The 4 hour time frame shows a clear impulse higher of lesser degree and I'm focused on that for now.
The arrows indicate both and scenario. The convergence of price is presenting us a relatively safe trade if we let it complete first.
Updates will follow.
But the bearish break will validate that pattern, once we see that I'll watch for a consolidation before selling towards 0.74.
Thanks for your input.