EUR/GBP Daily Outlook

EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8521; (P) 0.8560; (R1) 0.8604; More....

The break of 0.8590 minor resistance argues that correction from 0.8806 might be finished. Intraday bias is mildly on the upside and strong rally could be seen back to retest 0.8793/8806 resistance zone first. Break will indicate larger rally from 0.7755. Below 0.8504 will bring another fall instead. But in that case, we'd expect strong support from 0.8446 (50% retracement of 0.8085 to 0.8806 at 0.8446) to contain downside and bring rebound.

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.