EUR/GBP Price Analysis: Reaches bearish target for range breakout

• EUR/GBP has reached the key bearish target for its range breakout.
• The RSI has fallen into the oversold zone.
• The technical picture suggests that the pair is in a downtrend but risks a pullback in the short term.

EUR/GBP is in a bearish trend with odds favoring a continuation lower, albeit with a greater chance of the pair retracing first in the short term.

EUR/GBP has broken out of a range and fallen to a key breakout-based bearish target. Achieving the target suggests a risk that the pair could bottom out and rotate higher on a pullback.

EUR/GBP Daily Chart

The trend, both short, intermediate and long term, is bearish overall, suggesting a continued risk of further declines once the pullback, if it develops, is complete.

The price has reached both the conservative and the main target for the breakout of the range that developed during 2024. The main target is located at 0.8452, the 100% extrapolation of the range height to the downside.

The RSI is oversold, suggesting that the downtrend may be overextended and that shorts should not add to their positions. It also increases the probability of an upward correction developing.

Given the dominant bearish trend, the pair will likely resume its decline once any correction is complete. A break below 0.8418 (June 11 low) would create a lower low and likely result in a deeper sell-off, with 0.8400 as the next target, followed by 0.8340 (August 2022 low).