EUR/GBP Daily Outlook

 

Daily Pivots: (S1) 0.8401; (P) 0.8424; (R1) 0.8441;
Rebound from 0.8352 short term bottom is expected to extend higher to 0.8504 support turned resistance. Break will affirm the case that consolidation pattern from 0.8806 has finished too and will target 0.8652 resistance next. On the downside, below 0.8352 will bring another decline. But again, we'd stay cautious on reversal below 0.8397 support.
In the bigger picture, we're still preferring the case that correction from 0.9799 has completed with three waves down to 0.7755 already. Rise from 0.7755 isn't completed yet and should resume after completing the consolidation pattern from 0.8806. Above 0.8806 will target 0.9083 key resistance level and break will confirm this bullish case. However, break of 0.8164 cluster support (61.8% retracement of 0.7755 to 0.8806 at 0.8156) will invalidate this view and turn medium term outlook bearish for 0.7755 low.