Daily Pivots: (S1) 0.8936; (P) 0.8968; (R1) 0.8990; More…
EUR/GBP lost upside momentum after failing to sustain above 38.2% retracement of 0.9499 to 0.8670 at 0.8987 and retreated. Intraday bias is turned neutral first. Further rise is still in favor for the moment. Sustained break of 0.8987 will indicate completion of whole fall from 0.9499. Further rally should be seen to 61.8% retracement at 0.9182 and above. However, firm break of 4 hour 55 EMA (now at 0.8894) will suggest completion of rebound from 0.8670. Intraday bias will be turned back to the downside for retesting 0.8670 low.
In the bigger picture, while the pull back from 0.9499 is deep, there is no sign of trend reversal yet. The up trend 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.
