EUR/GBP price has dropped to a key support level at 0.8590 after breaking out of a multi-month range. Despite bearish signals, the short-term trend remains technically bullish, suggesting a potential rally. However, a clear break below the support level could indicate a deeper decline back into the range.
On April 19, during volatile trading, the pair reached a peak of 0.8645 but quickly reversed and fell back to the current consolidation around 0.8590. The daily chart shows that EUR/GBP hit its initial target for the range breakout, but there is still potential for further upside to around 0.8660. A bearish Tweezer Top candlestick pattern at the highs suggests a possible reversal.
The support level at 0.8590 is holding up price, representing the top of the range that began in February. Breaking below this level could signal more weakness with a target at 0.8530. The 4-hour chart indicates a Double Top pattern that has already reached its price target, indicating a possible decrease in bearish momentum.
While there is the possibility of a short-term uptrend, the neckline of the Double Top at 0.8622 may act as resistance in any potential upmove. Overall, the outlook for EUR/GBP remains uncertain, with the potential for both further upside and downside depending on the price action around key levels.