EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8412; (P) 0.8460; (R1) 0.8500; More…

EUR/GBP’s decline resumed after brief consolidation and accelerates to as low as 0.8276 so far. Intraday bias is back on the downside. Current fall from 0.9324 will target 161.8% projection of 0.9324 to 0.8786 from 0.9019 at 0.8149 next. On the upside, break of 0.8508 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.

In the bigger picture, correction from 0.9324 medium term top is still in progress. 38.2% retracement of 0.6935 to 0.9324 at 0.8411 is firmly taken out. Further decline should now be seen to 61.8% retracement at 0.7848 next. In any case, further decline would remain in favor as long as 0.8786 support turned resistance holds, even in case of strong rebound.