EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8403; (P) 0.8419; (R1) 0.8446; More....
Deeper decline is still expected in EUR/GBP with 0.8493 minor resistance holds. Again, fall from 0.8768 is viewed as the third leg of the consolidation pattern from 0.8806. Hence, we'd start to be cautious on bottoming below 0.8397 level. On the upside, above 0.8493 will argue that the decline from 0.8768 might be completed and will turn bias back to the upside for 0.8652 and above.
In the bigger picture, we're still preferring the case that correction from 0.9799 has completed with three waves down to 0.7755 already. Rise from 0.7755 isn't completed yet and should resume after completing the consolidation pattern from 0.8806. Above 0.8806 will target 0.9083 key resistance level and break will confirm this bullish case. However, break of 0.8164 cluster support (61.8% retracement of 0.7755 to 0.8806 at 0.8156) will invalidate this view and turn medium term outlook bearish for 0.7755 low.