EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8901; (P) 0.8937; (R1) 0.8959; More.

EUR/GBP recovers mildly after dropping to 0.8914 and with 4 hours MACD crossed above signal line, intraday bias is turned neutral for the moment. Some more recovery might be seen but after all short term outlook will now remain bearish as long as 0.9022 resistance holds. Below 0.8914 will bring fall resumption towards 0.8610/62 support zone. On the upside, though, break of 0.9022 minor resistance will argue that fall from 0.9137 is completed and revive the case that it's merely a correction to the rise form 0.8610.

In the bigger picture, since the rebound from 0.8601 was limited below medium term trend line resistance (0.9799, 9410) and reversed, chance now favors that price actions from 0.9799 are sideway consolidations in the larger up trend and is not completed. Nevertheless it's likely a five wave triangle pattern (0.8399, 0.9410, 0.8601, 0.9137, ?) with current fall as the final leg. Hence downside of the current fall will probably be contained above 0.8601 and finally bring long term rally resumption. Though, a break of 0.8601 will suggest that deeper correction is underway for 0.8186 cluster support instead. 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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