The EUR/GBP exchange rate has been rising since it made new lows in July. It has now found resistance from the top of the rising channel and a monthly pivot, and has formed a shooting-star candlestick on the hourly chart with diverging RSI. There may also be a dark cloud-cover candlestick on the 4-hour chart although we are still awaiting confirmation. A break below 0.7869 or a strong reversal pattern would be confirmation of a reversal down, targeting 0.7840 first. A breakout higher on the other hand could reach 0.7990.
Written by Forex4you.com