Daily Pivots: (S1) 0.8344; (P) 0.8379; (R1) 0.8398; More…
A temporary low is in place at EUR/GBP at 0.8312, ahead of 0.8303 low. Intraday bias is turned neutral for consolidation. But upside of recovery should be limited below 0.8511 resistance and bring another decline. Below 0.8303 will extend the whole corrective fall from 0.9304 towards 0.8116/20 key cluster support. We’d expect strong support there to completion the correction and bring rebound.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Such decline is likely ready to resume and should make a new low below 0.8303. At this point, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Rise from 0.6935 (2015 low) will resume at a later stage to 0.9799 (2008 high). However, sustained break of 0.8116 could bring deeper decline to next key support level at 0.7564 before the correction completes.
