EUR/GBP Shows Another Ascending Channel, This Time on H4

Following the June daily chart ascending channel with a nice breakout outcome, EUR/GBP is now presenting another similar pattern — this time on a 4-hour chart. The top border of the channel is active since July 20, while the bottom one became a support level on July 30. As with all the ascending channels, a bearish breakout should be expected for a high-probability trade. Of course, you may try trading this currency pair inside the channel.
The yellow lines show the actual channel on the screenshot below, while the cyan ones show the breakout entry levels with some buffer-zone added in. The green lines are the profit-taking levels for a breakout trade. A larger image is available on click:

You can also download my MetaTrader 4 chart template for this EUR/GBP pattern.
Update 2012-08-08: Opened short at 0.7883 with a stop-loss level at 0.7949 (quite far for this pair) and a take-profit level at 0.7791. This downside breakout is from ascending channel and thus should be alright, in my opinion.
Update 2012-08-15: Position closed with profit at 0.7856. Unfortunately the reward/risk ratio was extremely poor here — at about 0.4 — due to the ascending TP line.

If you have any questions or comments regarding this EUR/GBP chart pattern, please feel free to reply via the form below.