EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8848; (P) 0.8890; (R1) 0.8966; More

EUR/GBP’s strong break of 0.8879 resistance indicates that rise from 0.8312 has resumed. Intraday bias is back on the upside. Further rally would now be seen to retest 0.9304 high. At this point, there is no clear sign of up trend resumption yet. Hence, we’ll be cautious on strong resistance from 0.9304 to bring near term reversal. Nonetheless, for now, break of 0.8756 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It’s uncertain whether it is finished yet. But in case of another fall, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside and bring rebound. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.

EUR/GBP 4 Hours Chart

EUR/GBP Daily Chart

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