EUR/GBP Breakdown from Rising Channel | Reversal in Motion

📉 Technical Analysis: EUR/GBP just broke out of a clear rising channel on the 1H chart with a strong bearish engulfing candle, signaling an early reversal.

Price failed to maintain momentum above 0.8662 (previous high/resistance)

Massive rejection at the top of the channel, followed by a sharp sell-off

Entry at ~0.8583, SL above highs at ~0.8670, TP targeting near 0.8320 (previous demand zone)

Clean 2.5+ RRR setup 👌

🔎 Fundamentals Supporting Bearish Bias:

GBP Strengthening: Hawkish tone from the Bank of England with expectations of delayed rate cuts, supporting GBP bullishness

EUR Weakness: Euro pressured due to weaker German data and growing expectations that the ECB may cut rates earlier than the Fed/BOE

Recent UK Services PMI also came in stronger than expected, giving a further boost to the pound

Market sentiment shifting toward GBP over EUR due to diverging policy outlooks

📌 Trade Setup Recap:

Trade Type: Instant Sell

Currency: EUR/GBP

Entry Price: 0.8583

TP: 0.8320

SL: 0.8670

Risk:Reward: ~1:2.6

Key Reason for Entry: Rising channel breakdown + strong bearish rejection + fundamental GBP strength

📍 Key Chart Note (for overlay):
“Channel Break + Fundamental Divergence = Sell Setup ✅”