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EUR/GBP - Stalking a Falling Wedge

The EUR/GBP is in a falling wedge seen in the 4H chart. It starts this week consolidating at the falling wedge resistance.


(eurgbp 4h chart, 4/28)

Breakout scenarios:
Bullish: The 4H chart also shows the pair consolidating in the very short-term between 0.8217 and 0.8248. Note that the resistance around 0.8250 is a support/resistance pivot, so a break above it should suggest some bullish outlook especially because it would also clear above the falling wedge resistance.

This bullish outlook would first open up some common resistance in the 0.83-0.8310 area. A break above that then opens up the 2014-highs around 0.8390-0.84.

Bearish: A break below the 0.8215 level however will maintain the bearish pattern and structure, and thus first opens up the 0.82 handle, with further downside risk toward the 0.8155-0.8170 lows, which are the lows for 2014.