EUR/GBP's decline from 0.8305 extended lower last week and the development dampened the bullish case. Initial bias remains mildly on the downside for a test on 0.8164 key cluster support again. At this point, we're holding on to the view that strong support should be seen at 0.8164 cluster to finish the consolidation pattern from 0.8806. Above 0.8305 will turn bias back to the upside for 0.8348 and above. However, sustained break of 0.8164 will have some bearish implications.
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 finishing 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.
In the long term picture, no change in the bullish view that price actions from 0.9799 are merely a consolidation pattern and the up trend from 0.5680 is not finished yet. Indeed, such up trend is possibly resuming now. Break of 0.9083 key resistance should be a strong affirmation of the case and should at least send EUR/GBP for a test on parity.
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 finishing 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.
In the long term picture, no change in the bullish view that price actions from 0.9799 are merely a consolidation pattern and the up trend from 0.5680 is not finished yet. Indeed, such up trend is possibly resuming now. Break of 0.9083 key resistance should be a strong affirmation of the case and should at least send EUR/GBP for a test on parity.
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