Sat, Jan 28, 2023 @ 16:25 GMT

EUR/GBP Mid-Day Outlook

Daily Pivots: (S1) 0.8494; (P) 0.8505; (R1) 0.8520; More…

EUR/GBP’s rise from 0.8379 resumed by breaking 0.8549 and intraday bias is back on the upside for 0.8593 structural resistance. Sustained break there will be the first sign of larger bullish reversal and target 0.8656 resistance next. On the downside, break of 0.8487 support is needed to indicate completion of the rebound. Otherwise, near term outlook will stay cautiously bullish in case of retreat.

In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8593 resistance holds, towards long term support at 0.8276. We’d look for bottoming signal around there to bring reversal. Meanwhile, firm break of 0.8593 will now be an early sign of medium term bottoming. Further break of 0.8656 will pave the way to 38.2% retracement of 0.9499 to 0.8379 at 0.8807.

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