EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8509; (P) 0.8520; (R1) 0.8541; More…

With 0.8605 resistance intact, further decline is expected in EUR/GBP to 100% projection of 0.9324 to 0.8786 from 0.9019 at 0.8481 and then 0.8472 key support. We’d look for strong support from there to contain downside to bring rebound. On the upside, break of 0.8605 resistance will indicate short term bottoming and bring stronger rebound back to 0.8786 support turned resistance.

In the bigger picture, we’re seeing 0.9324 as a medium term top on bearish divergence condition in weekly MACD. Price actions from there should develop into a corrective pattern. Deeper fall should be seen back to 38.2% retracement of 0.6935 to 0.9324 at 0.8411 but strong support should be seen there, at least on first attempt, to bring rebound. On the upside, break of 0.9324 is needed to confirm up trend resumption. Otherwise, risk will stay on the downside even in case of strong rebound.