EUR/GBP Mid-Day Outlook

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

Intraday bias in EUR/GBP remains on the upside for a test on 0.9137 resistance. Break there will confirm that whole rally from 0.8601 has resumed and should target trend line resistance at 0.9213 next. On the downside, 0.9045 minor support will delay the bullish case and suggests that consolidation from 0.9137 is not completed yet. 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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