The common European currency has surged by 124 pips or 1.40% against the British Pound since September 1. The currency pair breached 50– and 100– hour SMAs during this period.
Currently, the exchange rate is trading near the upper boundary of a descending channel pattern. If the channel pattern holds, bearish traders could pressure the EUR/GBP pair lower within this week’s trading sessions.
However, if the currency exchange rate breaks the descending channel pattern, a surge towards the 0.9000 level could be expected this week.
