Action Insight Archives |
Written by ActionForex.com |
Apr 13 12 06:57 GMT
EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8235; (P) 0.8252; (R1) 0.8278; More.
Intraday bias in EUR/GBP remains neutral for the moment and some consolidation could be seen above 0.8229 temporary low. But recovery is expected to be limited by 0.8293 minor resistance and bring another fall. Break of 0.8221 key support will confirm fall resumption and should target 61.8% projection of 0.8830 to 0.8221 from 0.8505 at 0.8129 next. On the upside, though, above 0.8293 minor resistance will dampen the immediate bearish view and could possibly bring more consolidative trading above 0.8221 first.
In the bigger picture, price actions from 0.9799 are treated as a consolidation pattern in the long term up trend. Fall from 0.9083 is viewed as the third leg and could extend to 61.8% projection of 0.9799 to 0.8067 from 0.9083 at 0.8013 (which is close to 0.8 psychological level). We'd expect strong support inside 0.7693/8186 support zone, possibly near to 61.8% retracement of 0.6535 to 0.9799 at 0.7782 to contain downside to finish off the consolidation. On the upside, though, break of 0.9083 resistance is needed to indicate completion of the whole pattern from 0.9799. Otherwise, there will also be risk of another fall even in case of rebound.
Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box