Daily Pivots: (S1) 0.8800; (P) 0.8831; (R1) 0.8879; More…
At this point, intraday bias in EUR/GBP remains neutral as it’s bounded in range below 0.8865. On the upside, decisive break of 0.8851/65 resistance zone will pave the way to retest 0.9304 high. In case of another fall, downside should be contained by 0.8639 support to bring rebound. However, break of 0.8639 support will now indicate near term topping and bring deeper pull back 0.8529 resistance turned support and below.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. The leg from 0.9304 should have completed after testing 0.8332 structural support. But it’s too early to say that larger rise from 0.6935 is resuming. Rejection from 0.9304 will extend the consolidation with another falling leg. Meanwhile, firm break of 0.9304 will target 0.9799 (2008 high). In case of another decline, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside and bring rebound.
