EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8496; (P) 0.8540; (R1) 0.8577; More....
EUR/GBP dips further to as low as 0.8504 so far and intraday bias remains on the downside. The correction pattern from 0.8806 would extend to 0.8446 (50% retracement of 0.8085 to 0.8806 at 0.8446). But we'd expect strong support from there to contain downside and bring rebound. Above 0.8590 minor resistance will flip bias back to the upside for 0.8806 resistance. 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.