Daily Pivots: (S1) 0.8833; (P) 0.8861; (R1) 0.8901; More…
EUR/GBP’s rally continues after brief consolidation and reaches as high as 0.8902 so far. Intraday bias remains on the upside. Further rise should be seen to 0.9101 key resistance next. On the downside, break of 0.8825 minor support will turn bias neutral and bring consolidations again. But outlook will remain bullish as long as 0.8681 resistance turned support holds.
In the bigger picture, medium term decline from 0.9305 (2017 high) is seen as a corrective move. No change in this view. Current development argues that it might have completed with three waves down to 0.8472, just ahead of 38.2% retracement of 0.6935 (2015 low) to 0.9306 at 0.8400, after hitting 55 month EMA (now at 0.8511). Decisive break of 0.9101 resistance will confirm this bullish case. Nevertheless, as EUR/GBP is still staying inside long term falling channel, correction from 0.9305 could still extend to 0.8400 fibonacci level before completion.
