EUR/GBP Forecast: Upward Channel Continues
The EUR/GBP pair is extending a shallow ascending recovery channel that began at the August 30 lows. While the short-term trend remains uncertain, the pair is likely to continue climbing steadily higher within the channel's boundaries.
Potential Upward Breakout
A close above the 0.8464 high could confirm an upside breakout from the channel. This would suggest a continuation of the upward trend, with a potential target of 0.8477 based on the 0.618 Fibonacci extension.
Potential Downward Breakout
A close below 0.8423 could pave the way for further weakness, with a downside target of 0.8406 based on the 0.618 Fibonacci extension.
Technical Analysis
While the overall trend is bullish, the rising channel is relatively shallow compared to the previous bear move. This suggests that the upward momentum may be limited.