The EURGBP currency pair has been trading in a declining channel (blue trend lines) for more than a month. It is developing a corrective pattern within a longer-term uptrend. The lower boundary of the channel converges with the support area of 0.8950 - 0.8870 (A).
The rate touched this support and bounced towards the upper boundary. If the price breaks upwards above the 0.9100 level, the next resistance could be around the 0.9220-0.9290 area (B). If GBP found some strength and managed to break downwards and slide through the aforementioned support below the 0.8860 level, it could fall towards the next support (C) at 0.8775-0.8690.
As for the fundamental outlook, the trade negotiations between the EU and the UK are not over yet and the pair could be moved by any important news on the possible outcome. In the event that a deal is struck, the GBP could strengthen and therefore send the exchange rate lower. On the other hand, a possible breakdown in talks could strengthen the EUR currency and push the price towards resistance levels.