EUR/GBP Daily Forecast

Daily Pivots: (S1) 0.8594; (P) 0.8633; (R1) 0.8666;

EUR/GBP's decline is still in progress and break of 61.8% projection of 0.9494 to 0.8785 from 0.9036 at 0.8598 should pave the way on further fall to key projection targets of 100% projection at 0.8327. Though, strong support should be seen there to conclude the whole decline from 0.9494. On the upside, above 0.8671 minor resistance will turn intraday outlook neutral first. Note that further break of 0.8799 resistance will now serve as the first signal that EUR/GBP has bottomed out and will turn focus to 0.9036 resistance.

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 might extend towards 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), to complete the correction. On the upside, though, above 0.9036 will argue that the correction has completed earlier than we thought and will turn focus back to trend line resistance at 0.9181.

Based on ActionForex.com Technical Outlook