The EUR/GBP is cracking the 0.80 handle and a rising trendline that represents the consolidation pattern through the second half of May through June so far. During the 6/26 European session, the market is breaking to the downside as far as price action is concerned. Momentum has not broken out yet as the RSI reading is still within the 40-60 (consolidation) range.
The failure of the RSI to push above 60 does show maintenance of the bearish momentum. A break below 40 can reflect development of persistent bearish momentum.
The short-term target at the moment is the May low around 0.7950. A break below this opens up the 79.00 handle, as well as the 0.7690-0.7700 support level seen in the weekly chart.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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