Daily Pivots: (S1) 0.8913; (P) 0.8935; (R1) 0.8967; More…
EUR/GBP’s rally extends to as high as 0.8954 so far and is finally showing some solid upside momentum. Intraday bias remains on the upside for 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). Decisive break should confirm completion of whole decline from 0.9305. EUR/GBP should then target 61.8% retracement at 0.9043 next. On the downside, 0.8890 resistance turned support is needed to indicate short term topping. Otherwise, outlook will remain bullish even in case of retreat.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). The corrective structure of the fall from 0.9305 to 0.8620 is raising the chance that rise from 0.8312 to 0.9305 is an impulsive move. But we’re not too confident on it yet. In any case, wed stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
