EUR/GBP Price Analysis: Flirts with 0.8700 inside weekly falling channel

• EUR/GBP retreats inside a bearish chart pattern, trims early Asian gains.
• Seven-day-old support line, 200-HMA add to the downside filters.
• Bulls will look for fresh entries beyond 0.8720.

EUR/GBP drops back to 0.8695, up 0.07% intraday, ahead of Wednesday’s European session.

The cross-currency pair gradually steps back since the early week, portraying a short-term falling trend channel. However, the one-week-old rising support line and 200-HMA keep buyers hopeful amid a positive Momentum line.

It should be noted that the pair’s latest pullback from the stated channel’s upper line directs the quote towards a short-term support line, around 0.8680, a break of which will extend the weakness to highlight the channel’s lower line figures of 0.8670.

If at all the EUR/GBP bears keep reins past-0.8670, 200-HMA near 0.8655 offers an extra challenge.

Meanwhile, the channel’s resistance line near 0.8705 guards the quote’s immediate upside ahead of the ‘double-top’ formation near 0.8720.

EUR/GBP hourly chart

Trend: Further weakness expected