EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8011; (P) 0.8019; (R1) 0.8022; More...

Intraday bias in EUR/GBP remains neutral for some more sideway trading. On the upside, above 0.8064 will target a test on 0.8164 high. But at this point, we'd expect resistance from 0.8164 to limit upside and bring another fall to extend the consolidation pattern. Meanwhile, break of 0.7959 will target 61.8% retracement at 0.7911.

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.