- EUR/GBP continues to rise in a shallow channel.
- It will likely extend unless there is a breakout in one direction or the other.
He EUR/GBP is extending a shallow ascending recovery channel that began at the lows of August 30. The overall short-term trend is unclear: both positive and negative signs complicate the picture.
EUR/GBP 4-hour chart
EUR/GBP continues to respect the boundaries of the channel and, absent a breakout in either direction, will likely continue to rise steadily.
A close above the high of 0.8464 (September 11 high) would be required to confirm an upside break of the channel. Such a move could be expected to reach around 0.8477, the Fibonacci (Fib) extension of 0.618 if the channel height is extrapolated upwards.
Alternatively, a close below 0.8423 (September 10 low) would pave the way for further weakness towards a downside target at 0.8406, the downside .618 Fib extension.
The bullish signals are that the price is in an ascending channel, which has completely broken the previous descending channel and the exhaustion breakout during August (orange shaded circle) when it accelerated lower, which is a reversal signal.
The main bearish signal is the relatively shallow ascending channel compared to the much more pronounced previous bearish move.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.