EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8345; (P) 0.8358; (R1) 0.8373; More....

Intraday bias in EUR/GBP remains neutral for the moment and some more consolidations would be seen below 0.8399 temporary top. But near term outlook stays cautiously bullish as long as 0.8286 resistance turned support holds. We're favoring the case that larger consolidation pattern from 0.8806 has completed at 0.8157 after hitting 0.8164 key support. Above 0.8399 will target 0.8466 resistance next. However, break of 0.8286 will dampen our view and argue that another low below 0.8157 could be seen as the correction from 0.8806 extends.

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, sustained 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.