EUR/GBP Daily Forecast

Daily Pivots: (S1) 0.9005; (P) 0.9043; (R1) 0.9071; .

Intraday bias in EUR/GBP remains neutral for the moment and some more consolidations could be seen. Nevertheless, downside is expected to be contained by 38.2% retracement of 0.8662 to 0.9137 at 0.8956 and bring rally resumption. Above 0.9137 should target medium term trend line resistance at 0.9220 next.

In the bigger picture, the main question is on whether the correction from 0.9799 is finished at 0.8399, or it is still unfolding as a larger consolidation pattern. Also, if the consolidation is still in progress, what pattern would it be. In any case, we'd expect long term up trend to resume for another high above 0.9799 eventually after completing the current medium term consolidation. Break of 0.9410 resistance will be an early signal that the long term up trend is resuming and will turn focus to 0.9799 high.

Based on ActionForex.com Technical Outlook