EUR/GBP has recently reached a key downside target after breaking out of a range. The Relative Strength Index indicates that the pair is oversold, suggesting a bearish trend in the short-term. However, there is a possibility of a potential pullback before further downside movement.
On the daily chart, EUR/GBP shows a bearish trend across short, intermediate, and long-term timeframes. The pair has successfully hit the downside targets following the range breakout in 2024, with the main target at 0.8452. The RSI being oversold implies that the downtrend may be stretched, potentially leading to a correction higher.
Despite the likelihood of a pullback, the overall trend remains bearish. A break below 0.8418 could trigger a deeper sell-off, targeting levels at 0.8400 and 0.8340. Traders are advised to monitor the price action closely for potential opportunities in the market.