EUR/GBP Price Forecast: Downtrend Unfolds

• EUR/GBP is extending its short- and medium-term downtrends.
• There is a possibility that it will crash temporarily because it has hit its first negative target.

EUR/GBP broke decisively below the low of 18 July (2024) and reached the next key target level at 0.8343.

EUR/GBP daily chart

The trend is easy in both the short and medium term and given the principle that “the trend is your friend”, this means that the odds favor more downside.

EUR/GBP could get stuck at the current level, but this is likely to be temporary.

A daily close below 0.8340 will likely signal further downside towards the next target at 0.8287, the August 2022 low.

The Relative Strength Index (RSI) has entered oversold territory on an intraday basis. If it closes oversold, it would advise traders not to add to their short positions as there is a risk that a pullback could occur.