The single European currency has been trading in a downtrend channel against the Pound Sterling since the end of August 2017. The currency pair started to fall after it tested the upper border of the downtrend channel on August 29.
During this decline, the EUR/GBP exchange rate has reached a ten-month low level and has broken all previously drawn patterns. Moreover, a new junior descending channel has been mapped out to trail the market movement. Meanwhile, the 55– hour simple moving average was providing support for the pair near 0.8751 and could hinder the price from falling further.
As for near future, bears are likely to continue dominating the currency exchange rate until it reaches a significant support level set by the combination of the weekly and the monthly PPs at 0.8658.
