EUR/GBP Daily Outlook

Daily Pivots: (S1) 0.8975; (P) 0.8992; (R1) 0.9014;

EUR/GBP is still extending the consolidation from 0.9175 and intraday bias remains neutral. On the upside, break of 0.9175 will resume larger rise from 0.8670, towards 0.9499 high). However, break of 0.8930 support will also come with firm break of 55 day EMA. That would argue that rebound from 0.8670 has completed. In this case, intraday bias will be turned to the downside for 0.8864 support for confirmation.

In the bigger picture, while the pull back from 0.9499 was deep, there is no sign of trend reversal yet. The up trend from 0.6935 (2015 low) should resume at a later stage to 61.8% projection of 0.6935 to 0.9263 from 0.8276 at 0.9715. This will remain the favored case as long as 0.8276 support holds.