Daily Pivots: (S1) 0.8856; (P) 0.8887; (R1) 0.8911; More…
Outlook in EUR/GBP remains unchanged and intraday bias stays neutral. While the pull back fro 0.8994 is deep, the structure still suggests that it’s a correction. Thus we’re holding on to the view that fall from 0.9097 has completed at 0.8847 already. On the upside, break of 0.8994 will target a test on 0.9097 high. Firm break there will resume the rise from 0.8620 towards 0.9305 high. Though, break of 0.8847 will bring deeper fall to 61.8% retracement of 0.8620 to 0.9097 at 0.8802.
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.
