Daily Pivots: (S1) 0.8667; (P) 0.8705; (R1) 0.8739; More…
EUR/GBP recovered quickly after edging lower to 0.8670 and intraday bias is turned neutral first. Further decline is expected as long as 0.8863 resistance holds. Below 0.8670 will resume the decline from 0.9499 towards 0.8276/82 key support zone. However, break of 0.8863 will indicate short term bottoming and turn bias to the upside for stronger rebound.
In the bigger picture, while the pull back from 0.9499 is deep, there is no sign of trend reversal yet. The upside from 0.6935 (2015 low) should resume at a later stage to 61.8% projection of 0.6935 to 0.9263 from 0.8276 at 0.9715. This will remain the favored case as long as 0.8276 support holds.
