EUR/GBP Fails to Clear 0.7800 Handle
The EUR/GBP pair attempted to extend yesterday's recovery but failed to clear 0.7800 handle and has now dropped to 0.7775 level.
On H4 chart, the pair has been trending lower within a short-term descending trend-channel formation. The pair has even attempted some recovery from the trend-channel support, but the momentum doesn't seem to be strong enough to lift the pair back above 0.7800 round figure mark.
Technical levels to watch
The pair is reversing from its immediate strong resistance and hence, a subsequent break below 0.7760-50 support now seems to accelerate the fall, even below its recent low of 0.7735, towards testing the trend-channel support near 0.7700 round figure mark.
Alternatively, a decisive break-through 0.7800 immediate strong resistance should lift the pair immediately towards the trend-channel resistance near 0.7725-30 area. Furthermore, the descending channel break-out, above 0.7725-30 resistance, might trigger a near-term short-covering move immediately towards 0.7890-0.7900 round figure mark.