Daily Pivots: (S1) 0.8881; (P) 0.8923; (R1) 0.8954;

EUR/GBP's break of 0.8921 minor support suggests that recovery from 0.8855 has completed at 0.9027 already. Intraday bias is flipped back to the downside for 0.8833/55 support zone first. Break there will confirm that whole decline from 0.9410 has resumed for 61.8% projection of 0.9410 to 0.8833 from 0.9153 at 0.8786 next. On the upside, while another recovery cannot be ruled out, short term outlook remains bearish as long as 0.9027 resistance holds and another fall is still expected. However, break of 0.9027 resistance will argue that EUR/GBP might have bottomed out at 0.8833 already and stronger rally should then be seen to 0.9153 resistance first.

In the bigger picture, at this point, we're still favoring the case that medium term correction from 0.9799 has completed with three waves down to 0.8399 already. Rise from 0.8399 is possibly resuming the long term up trend. Hence, fall from 0.9410 is viewed as a correction only and should be contained by 0.8704 support. Break of 0.9027 will suggest that correction from 0.9410 has completed and rise from 0.8399 is resuming for a test on 0.9799 high first and then 61.8% projection of 0.6535 to 0.9799 from 0.8399 at 1.0416.

However, break of 0.8704 support will argue that firstly, rise from 0.8399 has completed at 0.9410 already. Secondly, this will indicate that fall from 0.9410 is likely the third leg of the correction pattern that started at 0.9799 and could extend beyond 0.8399 support before the whole correction concludes.

EUR/GBP