A detailed examination of the EURGBP pair reveals its current position within a downward trend, along with key target and resistance levels ahead.
Downtrend Context: Falling Price Channel
The EURGBP pair continues to operate within a falling price channel on the 4-hour chart. This context adheres to the ongoing downtrend originating from 0.8714.
Trend Consolidation Indications
A recent bounce from 0.8512 is assessed to potentially be a consolidation phase for the ongoing downtrend.
Downside Movement And Next Target
As long as the price remains within the channel, further declines can be anticipated. The next target for this downward movement is expected to be in the vicinity of 0.8470.
Key Resistance Levels and Possible Reversal
The key level of resistance stands at 0.8567. An upward breach of this level might imply that the downside movement has finished at 0.8512. Consequently, the pair could encounter resistance at the 0.8592 level, followed by the 0.8620 level.
In conclusion, the EURGBP continues to be in a downward trajectory, although potential consolidations and resistances might lead to reversals in course.