Resumes bear trend after breaking decisively below range floor

• EUR/GBP breaks below support from the floor of a six-week range. 
• The pair resumes its long-term bear trend. 

EUR/GBP has broken decisively below the base of a six-week range (red dashed line on chart) and is in free fall. 

EUR/GBP Daily Chart 

 

The pair is likely to fall substantially lower as the bearish trend resumes. The usual technical method of determining how far, is to take the height of the prior range and extrapolate it lower. A conservative estimate lies at the Fibonacci 61.8% extrapolation, at 0.8225. 

A more optimistic forecast at the 100% extension, at 0.8171.