EUR/GBP technical analysis: Rising trend from May lows breached

• EUR/GBP has found acceptance below the key rising trendline.
• The monthly chart is reporting early signs of bearish reversal.

EUR/GBP is currently trading at 0.9062, representing marginal losses on the day, having dived out of the trendline connecting May 6 and July 25 lows on Aug. 27.

More importantly, that trendline resistance has proved a tough nut to crack ever since.

The downside break of the trendline is backed by a below-50 reading on the relative strength index. Further, the pair created a big inverted bearish hammer candle last month, signaling a potential bullish-to-bearish trend change.

So, the probability of the pair falling below 0.90 in the short term is high. the outlook would turn bullish if the pair finds acceptance above Tuesday's high of 0.9148.

Daily chart

Monthly chart

Trend: Bearish

Technical levels