EUR/GBP Weekly Outlook: Undertone Waning

The near term outlook is all over the place without a clear bias to either side. The longer term outlook does show a different picture. The lengthy uptrend from early 2015 has turned into a consolidation phase with growing divergence and waning indicators. Although not expressly negative (yet), the undertone is weakening quite a bit.

Investors should keep an eye out on the main support zone around 0.8780. Clearing this area triggers (minimally) a deep correction towards 0.8370 on a 3-6 month horizon. On the longer term such a move could turn into a new down trend, but it is too early to act on that right now.

Primary trend: neutral
Outlook: consolidation, bearish undertone growing
Strategy: avoid or trading-short < 0.8780
Support: 0.8780 / 0.8370
Resistance: 0.8965 / 0.9270
Outlook cancelled/neutralized: n/a
Weekly chart EUR/GBP