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EUR/GBP Signals Bearish Outlook with Consolidation Breakout

The 4H EUR/GBP Chart shows a market that has been consolidating since late August after it made a high at 0.7420. It has since held mostly above 0.7240, consolidating in a range for almost a month now. 

EUR/GBP 4H Chart 9/21

(click to enlarge)

The EUR/GBP is starting this week with a bearish breakout. Aside from breaking the consolidation support, price is also now under the cluster of 200-, 100-, and 50-period simple moving averages (SMAs), and the 4H RSI is below 40 about to tag 30. These are signs that the market is reversing its prevailing bullish mode to a bearish one. 

EUR/GBP Daily Chart 9/21

(click to enlarge)

From the daily chart, we can see that before the August rally, price action has been at best sideways. And before this multi-month sideways action, price action was bearish. 

Given the prevailing mode and the current price action, the 0.70 psychological handle could be a short to medium-term target for EUR/GBP.