EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8593; (P) 0.8640; (R1) 0.8670; More....

EUR/GBP's consolidation from 0.8806 is still in progress and deeper fall could be seen to 0.8575 and below. But downside should be contained by 0.8446 (50% retracement of 0.8085 to 0.8806 at 0.8446). An eventual upside breakout is expected and break of 0.8806 will indicate resumption of larger rally from 0.7755.

In the bigger picture, price actions from 0.9799 are treated as a long term consolidation pattern and should have finished with three waves down to 0.7755 already. Focus is now on 0.9083 key resistance level. Break there will confirm this bullish case and should target 0.9799 high and above. Sustained of 0.8446 support is needed to be the first sign of medium term reversal. Otherwise, we'll stay bullish.