Daily Pivots: (S1) 0.8933; (P) 0.8961; (R1) 0.8991; More
EUR/GBP’s rally resumed by taking out 0.8994 firmly and reaches as high as 0.9040 so far. Intraday bias is back on the upside. Current rally from 0.8312 is now extending to 0.9304 key resistance level. At this point, there is no clear sign of up trend resumption yet. Hence, we’ll be cautious on strong resistance from 0.9304 to limit upside and bring another fall. However, break of 0.8922 support is needed to be the first sign of short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It’s uncertain whether it is finished yet. But in case of another fall, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside and bring rebound. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.
