The EUR/GBP is at the cusp of clearing a rising trendline that goes back to mid-August. After fighting it from the 200-4H SMA and 50% retracement of 0.7935, the EUR/GBP remained in a declining channel seen in the 4H chart as the 9/26 session began. Now as we enter the 9/26 US session, the pair is back at it, trying to continue channeling below the rising trendline.
Note that around the 0.79 level, the EUR/GPB is testing another trendline, one that goes back to July, and is not as sharp as the one that is being broken now. A break below this “last line of defense” exposes the 0.7756 2012-low.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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