The EUR/GBP exchange rate has been trading in a descending channel since the end of August. The common European currency made a U-turn south from the upper boundary of the descending channel pattern at 0.9086 on August 28 and had since reached a five-month low level at 0.8731.
A support level formed by the 50-hour simple moving average at 0.8775 was providing support for the currency pair during the morning hours of Thursday’s session.
If the support line holds, the currency exchange rate could aim at a resistance cluster formed by the combination of the weekly and the monthly PPs at 0.8820 during the following trading sessions.
