FxWirePro: EUR/GBP breaks below channel base, further downside likely on decisive close below

EUR/GBP broke below 0.7330 support in Tuesday's trade and closed at 0.7322, but has since bounced off from lows.

• The pair is attempting a recovery onto the channel base at 0.7338 on the day, but was relected at highs by 0.7344 and is currently trading at 0.7332.
   
• Decisive break below 0.7330 will find the pair by next support at 0.7275 (Dec 20 lows) and further below at 0.7255 (38.2% Fib of 0.69841 to 0.7346 rise). 
   
• On the other side, if the pair manages to close above rising channel base at 0.7338, retracements upto 0.7388 (Dec 30 highs) and then 0.74 levels likely. 
   
• Pair finds immediate support at 0.7320 (23.6 % Fib of  0.69841 to 0.7346 rise) and resistance at 0.7338 (rising channel base).
   
• Markets await Euro zone PPI data due ahead for further cues after Eurozone Dec CPI data disappointed yesterday.