The EUR/GBP has been in a bearish correction mode. As we can see in the 4H chart, price has retreated from about 0.9225 down to almost 0.83. However, this week's price action is signaling a possible bullish reversal. EUR/GBP 4H Chart 12/7(click to enlarge)Channel Resistance Cracked:- As we can see in the 4H chart, EUR/GBP was trading lower and forming a falling channel. - Last week, price found support just above 0.83, and this week, price pivoted above 0.84. - It is now cracking that channel resistance.- Furthermore, price is rising 100-period simple moving average (SMA) and is already above the 50-period SMA. Bullish Outlook:- The RSI is moving above 60, which also suggests that the prevailing bearish momentum is dying. - I would look for a push towards the 200-period SMA around 0.87. Failure:- A failure to stay above 0.85 and a return below 0.84 would be a sign of a failed bullish breakout, and would suggest further downside to 0.83 and possibly lower. EUR/GBP Daily Chart 12/7(click to enlarge)Bullish Continuation vs. Further Correction:- The bullish reversal scenario in the 4H chart, is essentially a bullish continuation scenario in the daily chart, where we can see price bullish throughout 2016. - In the short-term, I noted that 0.87 could be the bullish target, but we can see that a bullish continuation outlook re-opens the 0.90, and even 0.92 highs. - The failed breakout scenario on the other hand has the 0.8120-0.8180 area in sight, where price would visit a previous support/resistance pivot area as well as a rising trendline.