Daily Pivots: (S1) 0.8423; (P) 0.8457; (R1) 0.8512; More…
EUR/GBP recovered after hitting 0.8402 and intraday bias is turned neutral again. But near term outlook stays cautiously bearish with 0.8590 resistance holds. Fall from 0.8851 is seen as the third leg of the corrective pattern from 0.9304. Below 0.8402 will target 0.8303 support first. Break will confirm our view and target 0.8116 key cluster support level.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).
