EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8104; (P) 0.8121; (R1) 0.8141;

Intraday bias in EUR/GBP remains on the upside for the moment. Rise from 0.7755 has just resumed and should target 38.2% retracement of 0.9083 to 0.7755 at 0.8262 next. On the downside, break of 0.8022 minor support is needed to signal short term topping. Otherwise, we'll stay bullish even in case of retreat.

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.