EUR/GBP Price Analysis: Break of weekly rising channel favors bears around 0.8350

• EUR/GBP fades bounce off 61.8% Fibo., extends Wednesday’s pullback from weekly high.
• Rejection of bullish chart pattern, downbeat Momentum line favor sellers.
• 200-HMA, fortnight-old horizontal area add to the upside filters.

EUR/GBP remains fragile around 0.8360, despite recently bouncing off a daily low. In doing so, the quote remains downbeat for the second consecutive day after stepping back from a weekly high the previous day.

The reason could be linked to the cross-currency pair’s sustained break of a short-term bullish channel heading into Thursday’s European session. Also keeping bears hopeful is the Momentum line.

However, the 61.8% Fibonacci retracement (Fibo.) of February 03-07 upside and the weekly bottom, respectively near 0.8355 and 0.8345, challenge the short-term EUR/GBP bears.

Following that, the 0.8300 threshold may offer an intermediate halt during the downward trajectory targeting the monthly low of 0.8284.

On the contrary, the stated channel’s support line, now resistance around 0.8370, restricts the immediate upside of the quote.

Though, major attention will be given to the convergence of the 200-HMA and channel’s upper line, close to 0.8410, during the EUR/GBP upside.

Also challenging the pair’s upside momentum is the two-week-long horizontal resistance near 0.8435-40.

EUR/GBP: Hourly chart

Trend: Further weakness expected