EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.9029; (P) 0.9069; (R1) 0.9096; More.

EUR/GBP's consolidation from 0.9137 is still in progress and deeper fall might be seen to 0.8980 support. Nevertheless, we'd expect downside to be contained by 38.2% retracement of 0.8662 to 0.9137 at 0.8956 to conclude the consolidation and bring rally resumption. Above 0.9137 will target trend line resistance at 0.9205 next. However, sustained break of 0.8956 fibonacci level will argue that rise from 0.8601 is finished and will target a retest of this support instead.

In the bigger picture, the main question remains 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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