EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.9043; (P) 0.9070; (R1) 0.9094; More.

As disused before, EUR/GBP's retreat from 0.9137 might have completed at 0.8980 already. Intraday bias is cautiously on the upside. Break of 0.9137 will confirm that whole rise from 0.8601 has resumed and should target trend line resistance at 0.9213. On the downside, below 0.9045 minor support will delay the bullish case and bring more consolidation first. But downside should be contained by 38.2% retracement of 0.8662 to 0.9137 at 0.8956 and bring rally resumption.

In the bigger picture, the main question is on whether the correction from 0.9799 is finished at 0.8399, or it is still unfolding as a larger consolidation pattern. Also, if the consolidation is still in progress, what pattern would it be. In any case, we'd expect long term up trend to resume for another high above 0.9799 eventually after completing the current medium term consolidation. Break of 0.9410 resistance will be an early signal that the long term up trend is resuming and will turn focus to 0.9799 high.

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