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EUR/GBP at channel support

In the short-term, EUR/GBP has been bearish since mid-August. 

EUR/GBP 4H Chart 9/1

(click to enlarge)

Pound boosted by manufacturing PMI:
- Today, the GBP rallied across the board after surprisingly positive manufacturing PMI data for August
- This pound-strength has dragged EUR/GBP further down as we can see in the 4H chart.

Channel support and scenarios around this support:
- As price falls towards 0.84, it is testing a rising channel support coming up from the 0.82 pivot in June. 
- It should be noted that the prevailing trend has been bullish, boosted further after Brexit. 
- Because of prevailing bullish momentum and bias we should limit any bearish outlooks. For example, if price breaks the channel support and clears 0.84, we should anticipate support around 0.82. 
- Also note that the 4H RSI is below 30, which shows oversold conditions at least in the short-term.
- If price holds above 0.84 during the 9/1 and 9/2 session, we can anticipate a rally next week.
- A break above 0.85 would be a good sign of a bullish attempt that has at least the 0.8625 and then the 0.8725 pivots in sight. 
- With the prevailing trend being bullish, the 0.88 level, a common resistance going back to 2013, is in sight as well.