EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8460; (P) 0.8478; (R1) 0.8500; More....
Intraday bias in EUR/GBP remains on the downside for the moment. Focus remains on 0.8446 cluster support (50% retracement of 0.8085 to 0.8806 at 0.8446). At this point, we'd anticipate strong support from there and bring rebound. Above 0.8506 minor resistance will turn bias back to the upside for retesting 0.8793/8806 resistance zone. However, sustained break of 0.8446 will indicate that deeper fall is underway to 61.8% retracement at 0.8360 and below.
In the bigger picture, price actions from 0.9799 are treated as a long term consolidation pattern and should have finished with three waves down to 0.7755 already. Focus is now on 0.9083 key resistance level. Break there will confirm this bullish case and should target 0.9799 high and above. Sustained of 0.8446 support is needed to be the first sign of medium term reversal. Otherwise, we'll stay bullish.