EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8185; (P) 0.8216; (R1) 0.8261; More....

EUR/GBP recovered ahead of mentioned 0.8164 cluster support and breached 0.8230 support turned resistance. A short term bottom could be formed at 0.8168 already. Intraday bias is back on the upside for 0.8348 resistance first. As noted before, we'd expect strong support fro 0.8164 to complete the consolidation pattern from 0.8806. Break of 0.8348 should confirm near term reversal. However, decisive break of 0.8164 will have larger bearish implications.

In the bigger picture, we're still preferring the case that correction from 0.9799 has completed with three waves down to 0.7755 already. Rise from 0.7755 isn't completed yet and should resume after finishing the consolidation pattern from 0.8806. Above 0.8806 will target 0.9083 key resistance level and break will confirm this bullish case. However, break of 0.8164 cluster support (61.8% retracement of 0.7755 to 0.8806 at 0.8156) will invalidate this view and turn medium term outlook bearish for 0.7755 low.