EUR/GBP Price Analysis: Bears relying on cable bulls

• EUR/GBP bears are rattling the cage above 4-hour support.
• A breakout could be on the cards so long as cable holds above old resistance. 

EUR/GBP is bearish towards the prior weekly lows as the pound continues to firm and cracks a significant technical resistance across the USD charts:

Weekly chart 

From the weekly perspective, the downtrend is strong.

The previous candle was a strong bearish close which gives rise to the prospects of a downwards continuation this week for another bearish close. 

Daily chart

We have seen a significant correction on the daily chart in a 50% mean reversion, knocking on the door of a 61.8% Fibonacci retracement.

4-hour chart

However, there is still work to be done on the lower time frames as the price is stuck above support structure. 

On a break and restest, an optimal entry can be placed from a sell limit at resistance for a higher probability trade set up and a favourable risk to reward ratio.