EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8004; (P) 0.8022; (R1) 0.8042;

EUR/GBP is trying to draw support from the near term trend line and is holding above 0.8001 support for the moment. Intraday bias remains neutral. Not again that break of 0.8001 support will now be a sign of reversal and will bring deeper fall to 0.7922. Break will confirm that whole rebound from 0.7755 is completed and will target another low below there. Meanwhile, above 0.8074 will flip bias back to the upside for 0.8164 and above.

In the bigger picture, price actions from 0.9799 are treated as a long term consolidation pattern with fall from 0.9083 as the third leg. Strong support is expected inside 0.7693/8186 support zone to conclude the consolidation. The breach of the channel resistance and bullish convergence condition in daily MACD are signs of reversal. Break of 0.8152 resistance should strongly suggest that whole correction fro 0.9799 are completed and would pave the way to 0.9083/9799 resistance zone first. However, break of 0.7922 would extend the fall from 0.9083 for another take on 0.7693 support.