EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8526; (P) 0.8613; (R1) 0.8659; More....

The sharp decline from 0.8716 indicates that a short term top is formed there in EUR/GBP, on bearish divergence condition in 4 hours MACD. Intraday bias is mildly on the downside for deeper retreat. But at this point, we'd expect strong support from 38.2% retracement of 0.8085 to 0.8716 at 0.8475 to contained downside and bring rebound to extend the consolidation. An eventual break of 0.8716 to 200% projection of 0.7755 to 0.8164 from 0.7959 at 0.8777 is still anticipated.

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. Current development affirms the case that such correction is completed at 0.7755 already, inside 0.7693/8186 support zone as expected. Further medium term rally should be seen to 0.9083 key resistance level for confirmation. Meanwhile, we's stay bullish as long as 0.8164 support holds even in case of pull back.