FX.co ★ EUR/GBP Intraday Technical Analysis & Trade Recommendation December 26, 2011

EUR/GBP currency pair is currently trending down inside a bearish channel marked on the chart.

Currently the pair is testing the upper limit of this channel & the lower limit of broken previous consolidation range at 0.8375.

The situation is not confirmed as the last few candlesticks stepped slightly above the upper limit of the channel & the last daily candlestick is strong bullish.

If we have confirmation with price action ( strong bearish candlestick ) this indicates a SHORT opportunity at the market price.

SL should be 4H closure above 0.8420 & TP should be at 0.8340, 0.8300 then 0.8265.