EUR/GBP Outlook
The break of 0.8230 confirmed that fall from 0.8399 has resumed and intraday bias remains on the downside for 0.8157 key support. Also, the cross is staying inside medium term falling channel so far and decisive break of 0.8157 will carry larger bearish implications. On the upside, above 0.8309 will argue that fall from 0.8399 has completed and will turn bias back to the upside for retesting this resistance.
In the bigger picture, as long as 0.8164 cluster support (61.8% retracement of 0.7755 to 0.8806 at 0.8156) holds, we’re still mildly preferring the bullish case. That is, correction from 0.9799 has completed with three waves down to 0.7755 and rise from there would resume sooner or later. Rebound from current level and break of 0.8399 resistance will affirm this bullish case and target retest of 0.8806. However, 0.8156/64 cluster support looks rather vulnerable now. Sustained break there will invalidate our bullish view and would firstly extend the decline from 0.8806 towards 0.7755. Secondly, whole correction pattern from 0.9799 could extend beyond 0.7755.
Source: actionforex
