Previous: EUR/GBP Threatening Bearish Continuation (7/30)

EUR/GBP 4H Chart 8/2/2012 2:55PM EDT

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.