The common European currency surged by 118 pips or 1.33% against the British Pound during last week’s trading sessions. The currency pair tested the 200– period SMA at 0.8994 on November 30.
Everything being equal, the exchange rate could continue to maintain the descending channel pattern during the following trading sessions. The potential target for bearish traders would be near the 0.8860 level.
However, given that the currency exchange rate is currently trading near the upper line of the descending channel pattern, a breakout might occur within this week’s trading sessions.