• EUR/GBP is breaking out below the lower channel of a shallow rising channel. 
• If the break holds the pair will probably continue falling.

EUR/GBP pierces below the lower channel line of its rising channel in a breakout attempt lower. 

It is possible the bearish bias evident during the steep fall in August is reaserting itself. A close below 0.8423 (September 10 low) would pave the way for further weakness to a downside target at 0.8406, the 0.618 Fib extension lower. Below that lies support at 0.8385. 

EUR/GBP 4-hour Chart 

Alternatively, if the break proves false there is a chance the shallow rising channel could extend, with circa 0.8460 as a possible upside target.  

A close above the 0.8464 high (September 11 high) would be required to confirm an upside breakout from the channel. Such a move might reach about 0.8477, the 0.618 Fibonacci (Fib) extension if the height of the channel extrapolated higher.