EUR/GBP Daily Outlook
Daily Pivots: (S1) 0.8933; (P) 0.8959; (R1) 0.8984;
A temporary top is in place at 0.8994 and intraday bias is turned neutral first. Corrective pull back from 0.9097 should have completed at 0.8847 and further rise is in favor. Above 0.8994 will target 0.9097 resistance first. Firm break there will resume the rise from 0.8620 towards 0.9305 high.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). At this point, there is no clear sign of range break out yet. And more corrective trading would continue. On the upside, in case of another rise, we’d stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 131.92; (P) 132.49; (R1) 133.09;
EUR/JPY’s consolidation from 113.12 temporary top is in progress and intraday bias stays neutral. As long as 130.86 resistance turned support holds, further rally is expected. On the upside, above 133.12 will target 100% projection of 124.89 to 130.86 from 127.85 at 133.82 first. Break will target 137.49 high. However, firm break of 130.86 will dampen this bullish view and turn focus back to 127.85 support.
In the bigger picture, current development suggests that EUR/JPY has defended key support level of 124.08 key resistance turned support. And, the larger up trend from 109.03 (2016 low) is still in progress. Firm break of 137.49 will target 141.04/149.76 resistance zone next. This will now be the preferred case as long as 127.85 near term support holds.