EURGBP Looks for Reprieve

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EURGBP has been trading in an ascending channel since reaching lofty highs in September. Since then, we have seen several attempts to break higher from the channel, with many false attempts leading prices lower.

Several hidden bearish divergences point to a continuous decline on the currency pair, with the recent double bottoms insight.

Should the said target be breached, we could then expect prices to remain below the mean.eurgbp

A look on the 2-hour chart shows support at the median regression, which has driven prices out of the Ichimoku cloud.

The slight bounce now targets the 61.8% of the 0.8861/0.9048 upside Fibonacci leg.

Should momentum increase, then this could negate the recent bearish divergence and lift prices towards the mid-89.00 area.

Further upside could then prompt the currency pair towards the 50%, which will cement itself at the top border of the long-term descending channel.

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