EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8053; (P) 0.8083; (R1) 0.8107; More...

No change in EUR/GBP's outlook./. Rebound from 0.7959 could extend higher. But we'd expect the cross to continue to lose upside momentum,. And, we'd expect some resistance from 0.8164 to limit upside and bring another decline to retest 0.7959. Below 0.8042 minor support will turn bias back to the downside.

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. No change in this view. The corrective look of the rebound from 0.7755 argues that another low could be seen in EUR/GBP before the correction completes. Though, we'd look for reversal signal again as it approaches 0.7693. Meanwhile, sustained break of 0.8164 would likely have 55 weeks EMA firmly taken out and would have bullish implications.