EURGBP Breakout Watch: Key Trendline Under Fire

The EURGBP currency pair is currently at an interesting juncture on the Daily timeframe. Following a strong sell-off in June and July, the price has been recovering but recent structure suggests a potential bear flag within a larger bearish move.

According to TradingView user KinkiHuang, the current price of ~0.8572 is sitting close to the lower trendline of a rising channel, which makes this setup interesting. However, Huang notes that they are not entering a sell position yet and are waiting for confirmation in the form of a clear Daily breakout below the rising trendline.

The key trigger for a potential sell signal is a breakdown below the rising trendline, with a preferable confirmation being a Daily candle close below the structure. If this occurs, Huang expects bearish continuation back towards the July low/support zone around 0.846.