EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8702; (P) 0.8727; (R1) 0.8769; More.

At this point, intraday bias in EUR/GBP remains neutral. However, note that decisive break of 0.8792 resistance will be the first signal that the cross has already bottomed out at 0.8601 already. In such case, intraday bias will be turned to the upside and stronger rise should be seen towards 0.8833/9153 resistance zone next. On the downside, though, below 0.8686 will indicate that recent fall is still in progress for another low below 0.8601 before conclusion.

In the bigger picture, current development indicates that rebound from 0.8399 has completed at 0.9410 already and fall from there could be the third leg of the whole correction pattern that started at 0.9799. Outlook will remain bearish as long as 0.8833 support turned resistance resistance holds. Correction from 0.9799 could extend further to 0.7693/0.8186 support zone, with 100% projection of 0.9799 to 0.8399 from 0.9410 at 0.8010 in between. On the upside, though, above 0.8833 will argue that fall from 0.9410 might be over and price actions from 0.9799 are developing into sideway consolidation, probably in form of triangle, rather than a deep correction.

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