EUR/GBP Weekly Outlook

EUR/GBP's strong rally continued last week and extended to as high as 0.9217 so far. Initial bias remains on the upside and further rise should be seen to 61.8% retracement of 0.9799 to 0.8399 at 0.9264 next. Break will then target 0.9494 resistance. On the downside, below 0.9144 minor support will turn intraday outlook neutral and bring consolidation. But downside should be contained by 0.8983 support and bring rally resumption.

In the bigger picture, correction from 0.9799 has completed with three waves down to 0.8399 already and rise from there is tentatively treated as resumption of long term up trend. Break of 0.9799 bring rally to next medium term target at 61.8% projection of 0.6535 to 0.9799 from 0.8399 at 1.0416. On the downside, below 0.8983 will indicate that a short term top is formed and some lengthier consolidation would be seen. But after all, we'll hold on to this bullish view as long as 0.8722 support holds.

In the long term picture, long term up trend in EUR/GBP might be resuming as correction from 0.9799 has completed at 0.8399. Decisive break of 0.9799 high will confirm this bullish view and target 261.8% projection of 0.5680 to 0.7258 from 0.6535 at 1.0666.

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