Cross-rate signals: EUR/GBP resumes decline

After the fundamental factors, on which the British pound weakened across the whole spectrum of the market, the pair EUR/GBP fought off the upper boundary of the descending channel, which can be traced since September of last year.

The decline in the euro against the pound is caused by the maintenance of a downward channel and possible risks for the euro area. Trend indicators also show the resumption of the downward trend and the general weakness of the European currency, which is confirmed in the crosses.

The entry zone for sale is the mark: from 0.8840 to 0.8860, while a repeat test of significant resistance 0.8880-0.8900 is possible. The price fixation below 0.8840 will open the way to support levels of 0.8810-0.8790, the first resistance, and 0.8730-00. 

Fig. EUR/GBP H4. The current price is 0.8840.

Hanzenko Anton