EUR/GBP - is price now clear of the descending daily channel?
EUR/GBP continued to push higher this week and, more significantly, pushed above the descending daily channel structure that has been keeping price in place since mid-Sept. The pair managed to break through the structure on Weds but was subsequently dragged back to the upper boundary during the later half of the week. Without a clear break and close above this structure we can’t discount that price may fall back to the lower boundary of the channel.
That being said, the pair has now posted its first higher high on the daily timeframe since mid-Sept, and with the break back above the key inflection level of 0.9000, the change in structure should give encouragement to any short-term bulls.
This week we will be looking to see if price can stay above 0.9000 and potentially post a higher low on the daily timeframe, which would continue to emphasize a short-term trend change from bearish to bullish. However, if price gets pulled back into the descending channel structure, our prior bearish bias will return.
That being said, the pair has now posted its first higher high on the daily timeframe since mid-Sept, and with the break back above the key inflection level of 0.9000, the change in structure should give encouragement to any short-term bulls.
This week we will be looking to see if price can stay above 0.9000 and potentially post a higher low on the daily timeframe, which would continue to emphasize a short-term trend change from bearish to bullish. However, if price gets pulled back into the descending channel structure, our prior bearish bias will return.