EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8505; (P) 0.8567; (R1) 0.8603; More.

EUR/GBP failed 0.8633 cluster resistance (50% retracement of 0.8866 to 0.8399 and 100% projection of 0.8399 to 0.8597 from 0.8435) and retreated. Break of 0.8565 turns intraday outlook neutral first. On the upside, sustained break of 0.8633 will solidify the case that such rise from 0.8399 is developing into something impulsive nature and will bring a test of 0.8866 resistance next. On the downside, though, a break below 0.8435 will indicate that rebound from 0.8399 is merely a correction and whole fall from 0.494 is still in progress.

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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