EURGBP in a Descending Channel
As you see in the 4H chart, price is in the descending parallel channel and has been rejected by the upper band.
MACD shows a regular negative divergence:
Although price has made a higher high, MACD has made a lower high.
On the other hand, there is a strong support at 0.8570 which has been tested by price for several times before.
If this support level broken out to the downside, we can expect more fall towards the channel’s lower band.
Otherwise, we might see an upside breakout on the channel’s upper band and price enters to the new parallel channel and rises as the same size as the channel.
MACD shows a regular negative divergence:
Although price has made a higher high, MACD has made a lower high.
On the other hand, there is a strong support at 0.8570 which has been tested by price for several times before.
If this support level broken out to the downside, we can expect more fall towards the channel’s lower band.
Otherwise, we might see an upside breakout on the channel’s upper band and price enters to the new parallel channel and rises as the same size as the channel.
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