EUR/GBP Daily Forecast

Daily Pivots: (S1) 0.8463; (P) 0.8499; (R1) 0.8562; .

EUR/GBP rebounds strongly but after all, it's still staying in established range of 0.8399/8603. Outlook remains neutral for the moment. Note that while another fall to below 0.8399 cannot be ruled out for the moment, EUR/GBP will continue to lose downside momentum as it approaches 100% projection of 0.9799 to 0.8635 from 0.9494 at 0.8330, and finally bring reversal. On the upside, break of 0.8603 will revive the case that EUR/GBP has bottomed out at 0.8399 already. Intraday bias will be flipped back to the upside for 0.8866 resistance next.

In the bigger picture, price actions from 0.9799 so far represent consolidation in the larger up trend. Current decline from 0.9494 is treated as the third leg of such correction and is possibly still in progress for 100% projection of 0.9799 to 0.8635 from 0.9494 at 0.8330. But downside will likely be contained there, and above 0.8186/8234 key cluster support zone (38.2% retracement of 0.5680 to 0.9799 at 0.8223). On the upside, break of 0.8866 will be an important indication that correction from 0.9799 has completed and will turn outlook bullish for retesting this high.

Based on ActionForex.com Technical Outlook