EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8534; (P) 0.8565; (R1) 0.8611; More.

EUR/GBP's break of 0.8603 resistance revives the case that the cross has bottomed out at 0.8399. Break of 0.8633 (50% retracement of 0.8866 to 0.8399 and 100% projection of 0.8399 to 0.8597 from 0.8435) will solidify the case that such rise from 0.8399 is developing something into impulsive nature and will bring a test of 0.8866 resistance next. On the downside, though, below 0.8565 will turn intraday outlook neutral again and argue that price actions from 0.8399 might merely be consolidation rather than reversal.

In the bigger picture, price actions from 0.9799 so far represent consolidation in the larger up trend. Current decline from 0.9494 is treated as the third leg of such correction and is possibly still in progress for 100% projection of 0.9799 to 0.8635 from 0.9494 at 0.8330. But downside will likely be contained there, and above 0.8186/8234 key cluster support zone (38.2% retracement of 0.5680 to 0.9799 at 0.8223). On the upside, break of 0.8866 will be an important indication that correction from 0.9799 has completed and will turn outlook bullish for retesting this high.

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