EUR/GBP Daily Forecast

Daily Pivots: (S1) 0.8552; (P) 0.8603; (R1) 0.8632; .

EUR/GBP's strong break of 0.8581 support indicates that recent choppy recovery from 0.8399 has completed at 0.8670 already. importantly, the three wave structure suggests that it's merely a correction in the larger fall from 0.9494. Intraday bias is now flipped back to the downside for 0.8399 first. Break will confirm fall resumption to next target of 100% projection of 0.9799 to 0.8635 from 0.9494 at 0.8330. On the upside, above 0.8595 will turn intraday outlook neutral first and bring recovery, but upside should be limited below 0.8670 resistance and bring another fall.

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 should still be in progress. Nevertheless, downside should be contained above 0.8186/8234 key cluster support zone (38.2% retracement of 0.5680 to 0.9799 at 0.8223) to conclude whole correction from 0.9799. Hence, we'd continue to watch for reversal signal in next fall. On the upside, above 0.8670 will revive the case that EUR/GBP has bottomed out already. Further break of 0.8866 resistance will be the confirmation.

Based on ActionForex.com Technical Outlook