EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8492; (P) 0.8518; (R1) 0.8553; More....
EUR/GBP's recovery from 0.8484 extends further as the week starts but upside is still limited below 0.8601 minor resistance. Intraday bias remains neutral first. Deeper decline cannot be ruled out, but loss of momentum as seen in bullish convergence condition in 4 hours MACD should help 0.8446 support (50% retracement of 0.8085 to 0.8806 at 0.8446) contain downside and bring strong rebound. Above 0.8601 will turn bias back to the upside for 0.8806 high first. 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.