Daily Pivots: (S1) 0.8817; (P) 0.8859; (R1) 0.8905; More…
EUR/GBP’s break of 0.8890 resistance suggests resumption of rise from 0.8620. Intraday bias is now on the upside. Current rally would target 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). However, upside momentum is rather unconvincing. Break of 0.8808 support will be the first sign that whole rebound from 0.8620 is completed. Deeper fall would then be seen to 0.8724 support for confirmation.
In the bigger picture, EUR/GBP is staying in 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.
