The EUR/GBP continued to channel upwards after bouncing off channel support. During the 8/1 and part of 8/2 trading sessions, the market was knocking at the rising channel resistance, until Draghi made his comments after the ECB meeting, disappointing markets that thought he was going to do something whereas he really just kicked the can down the road.
However, the bearish attempt during the 8/2 session is still holding in the recent rising channel. In the larger degree, this channel could be a flag pattern. The 50% retracement of the 0.8094 to 0.7756 swing resides at 0.7925. Then 0.7950 is a previous key support pivot that can act as resistance this time around.
Plus the 200SMA in the 4H chart resides at the 0.7950 level.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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