Forex Technical Update
The 4H EUR/GBP chart shows a strong start to this week, bouncing off a projected trendline support seen in the 4H chart. The RSI also bounced off of 40, and is pushing back above 60, a reflection of bullish momentum maintained in this time-frame. Price action has 0.8375 as a flat resistance of an ascending triangle pattern. A break above 0.8375 opens up the 0.8420 pivot.
It should also be noted that a break above 0.8375 also breaks a declining channel seen in the daily chart, so this will be a very key break. Then at 0.8420 pivot, we should see where the RSI is, whether the daily reading can break above 60, which would be a sign of loss of bearish momentum. A break above 0.8420 opens up pivot area 0.85-0.8525, which is where the 50% retracement (of 0.8830-0.8220) swing resides.
Failure to break above 0.8375 and a break below 0.8280 would be a major bearish continuation signal with 0.8140 as the first target, and 0.80 being the more aggressive one.