EUR/GBP Daily Outlook
Intraday bias in EUR/GBP remains neutral for some consolidations above 0.8197 temporary low. Recent development is quite mixed. But we’d like to point out again that the cross is staying inside medium term falling channel. And there is no confirmation of bottoming. Below 0.8197 will target 0.8157 key support and break will carry larger bearish implications. On the upside, break of 0.8309 will confirm completion of the fall from 0.8399 and will bring retest of 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
