EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8734; (P) 0.8755; (R1) 0.8780; More…

Intraday bias in EUR/GBP remains neutral for consolidation above 0.8722 temporary low. Upside of recovery should be limited below 0.8847 support turned resistance to bring another fall. On the downside, break of 0.8722 will extend the decline from 0.9097 for 0.8620 low first. Decisive break there will resume whole down trend from 0.9304. In that case, next target will be 100% projection of 0.9305 to 0.8620 from 0.9097 at 0.8412.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Current development suggests that fall from 0.9303, as a down leg in the pattern, is still in progress. But in case of deeper fall, downside should be contained by 0.8116 cluster support, 50% retracement of 0.6935 (2015 low) to 0.9304 at 0.8120, to bring rebound.