Daily Pivots: (S1) 0.8725; (P) 0.8755; (R1) 0.8813; More…
EUR/GBP rebounded after hitting 0.8693 and drew support from near term channel. But it’s staying in range of 0.8679/8844. Intraday bias remains neutral first. On the upside, break of 0.8844 will resume the rebound from 0.8620. That will also revive the case of larger bullish reversal. EUR/GBP should target 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). On the downside, break of 0.8679 support will indicate completion of the rebound form 0.8620. And intraday bias will be turned back to the downside for this low.
In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
