EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8844; (P) 0.8881; (R1) 0.8912; More.

With 4 hours MACD crossed above signal line, intraday bias is turned neutral for the moment and some sideway trading might be seen in EUR/GBP. Nevertheless, recovery should be limited below 0.8988 support turn resistance and bring fall resumption. Current decline from 0.9153 is still expected to resume whole fall from 0.9410 to 0.8830 support and possibly further to 61.8% projection of 0.9410 to 0.8833 from 0.9153 at 0.8786. However, focus will be on reversal signal again as EUR/GBP re-enters into 0.8704/8837 support zone.

In the bigger picture, medium term correction from 0.9799 has completed with three waves down to 0.8399 already and rise from there is tentatively treated as resumption of long term up trend. Such rise should target a test on 0.9799 first after completing the correction from 0.9410, which should b contained by 0.8704 support. Break of 9799 will bring rally to next medium term target at 61.8% projection of 0.6535 to 0.9799 from 0.8399 at 1.0416. We'll hold on to this bullish view as long as 0.8704 support holds.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box