EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8356; (P) 0.8372; (R1) 0.8398; More....

Intraday bias in EUR/GBP remains mildly on the upside for the moment. The break of 0.8390 resistance affirms the case of near term reversal and further rally would be seen to 0.8463 resistance next. Below 0.8252 will delay the bullish case and bring another decline. But still, we'd expect strong support above 0.8164 cluster support to complete the correction from 0.8806 and bring rebound.

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.