[m.youssif]

EURGBP's pull back from 0.8922 extends further to as low as 0.8767 so far today. Deeper decline could be seen but we'd still expect downside to be contained by 0.8713 cluster support (38.2% retracement of 0.8354 to 0.8922 at 0.8705) and bring rally resumption. Above 0.8922 will target 0.8940 resistance first and then 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 next. However, sustained break of 0.8705/12 will indicate that a short term top is at least formed and bring deeper fall to 55 days EMA (now at 0.8676).

In the bigger picture, the sustained break of medium term trend line resistance revived the case that correction from 0.9799 has finished with three waves downside to 0.8607 already. The long term up trend that started back in 2000 might be resuming. Further break of 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 will indicate that rise fro 0.8067 is likely developing into an impulsive wave and will further affirm this bullish case. EUR/GBP should then target a new high above 0.9799 then. On the downside, break of 0.8284 support is now needed to indicate that rebound from 0.8067 is completed. Otherwise, outlook will remain bullish even in case of deep pull back.

[m.youssif]

EURGBP's pull back from 0.8922 extends further to as low as 0.8767 so far today. Deeper decline could be seen but we'd still expect downside to be contained by 0.8713 cluster support (38.2% retracement of 0.8354 to 0.8922 at 0.8705) and bring rally resumption. Above 0.8922 will target 0.8940 resistance first and then 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 next. However, sustained break of 0.8705/12 will indicate that a short term top is at least formed and bring deeper fall to 55 days EMA (now at 0.8676).

In the bigger picture, the sustained break of medium term trend line resistance revived the case that correction from 0.9799 has finished with three waves downside to 0.8607 already. The long term up trend that started back in 2000 might be resuming. Further break of 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 will indicate that rise fro 0.8067 is likely developing into an impulsive wave and will further affirm this bullish case. EUR/GBP should then target a new high above 0.9799 then. On the downside, break of 0.8284 support is now needed to indicate that rebound from 0.8067 is completed. Otherwise, outlook will remain bullish even in case of deep pull back.