EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8824; (P) 0.8840; (R1) 0.8863;
Intraday bias in EUR/GBP remains neutral for range trading below 0.8910. As long as 0.8808 minor support holds, further rise is mildly in favor. On the upside, break of 0.8901 will resume the rebound fro 0.8620 and target 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). However, break of 0.8808 support will be the first sign that whole rebound from 0.8620 is completed. Deeper fall would then be seen to 0.8724 support for confirmation.
In the bigger picture, EUR/GBP is staying in long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance from 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 131.18; (P) 131.45; (R1) 131.74;
EUR/JPY’s rally is still in progress and intraday bias remains on the upside. Current rally from 124.61 should target 100% projection of 124.61 to 130.33 from 127.13 at 132.85 next. On the downside, below 130.79 minor support will turn bias to the downside and bring retreat. But downside should be contained by 129.55 resistance turned support to bring another rally.
In the bigger picture, the strong break of channel resistance from 137.49 suggests that the decline from there as completed. The three wave structure suggests that it’s a correction. With 124.08 key resistance turned support intact, medium term bullishness is also retained. Break of 133.47 will affirm this bullish case and target 137.49 and above. This will now be the favored case as long as 127.13 support holds.
