Daily Pivots: (S1) 0.8902; (P) 0.8956; (R1) 0.8997; More…
Intraday bias in EUR/GBP remains on the downside at this point. A short term top was formed at 0.9097, and the corrective rise from 0.8620 could have completed too. Firm break of 38.2% retracement of 0.8620 to 0.9097 at 0.8915 will affirm our bearish view and target 61.8% retracement at 0.8802 and below. On the upside, though, above 0.9005 minor resistance will turn focus back to 0.9097 high instead.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). At this point, there is no clear sign of range break out yet. And more corrective trading would continue. On the upside, in case of another rise, we’d 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.
