The EUR/GBP pair continues to consolidate in a rising channel. It is currently at the base of the formation and has just bounced off the lower channel- line and it is possible it will now rally back up to the range highs around 0.8150, although considerable resistance currently lies directly above price preventing more gains and equally it could pull-back to support at 0.8025. A major breakout lower would target 0.7900 and then 0.7875 eventually with confirmation given below 0.7995.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst