EURGBP - Bear channel still intact

Given that I haven't yet commented on the EURGBP I'll start off with the long term charts and increase granularity as I go along.

On the LT charts we can see that we are in a corrective wave pattern from the aggressive price action from the end of 2007-2008.  The Fibo levels have proven to be good support levels along the way at 38.2% (0.8537), 50% (0.8159) and at 61.8% (0.7781) which have all now been met.

We still however remain in a bear trend channel so until this is broken this should continue to dictate our trading strategies.  The Gann fan has also been working relatively well so could also be worth considering.

Taking a closer look, the contract managed to break through the trend support line from the Aug12-Aug13 rally, at the beginning of september looks like it could be under more pressure for the remainder of the year.  Especially given its orientation to the 100&200day SMA which have proven to be good indicators for the past couple of years and which also ties in with the longer term chart.  I might expect some strength come back in temporarily as the stochastic has flipped back to positive and potentially a retest of these moving averages and previous resistances, but then to fail and start to trading lower subsequently.

Important support levels to pay attention to are the recent significant low at 0.8300 but then also 0.8257 and 0.8140 indicated on the chart, which is very close to the 50% retracement from LT chart move at 0.8159 (mentioned in 2n paragraph).  Key resistances are the 100&200day SMA as discussed before but also the high made on the 29th October at 0.8585

Charts sourced from ig.com