The common European currency has declined by 142 basis points or 1.65% in value against the British Pound since January 15. The decline began after the currency pair tested the upper boundary of a descending channel pattern at 0.8580.
The exchange rate is currently trading near a resistance cluster formed by the weekly and the monthly PPs at 0.8456.
If the resistance cluster holds, a decline towards a psychological level at 0.8300 could be expected.
However, if the EUR/GBP pair breaks the resistance cluster, bullish traders will drive the currency exchange rate towards the 0.8630 area during the following trading sessions.
