EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8616; (P) 0.8637; (R1) 0.8672; More....

EUR/GBP drops sharply to as low as 0.8529 as the week starts and broke 0.8575 support. Current fall is part of the consolidation pattern from 0.8806 and intraday bias remains on the downside for deeper fall. Though, at this point, we'd expect strong support from 0.8446 (50% retracement of 0.8085 to 0.8806 at 0.8446) and bring rebound. 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.