Daily Pivots: (S1) 0.8871; (P) 0.8946; (R1) 0.8990; More…
Intraday bias in EUR/GBP is turned neutral with the current pull back. Focus is back on 0.8880 support. As long as this support holds, above rise will remain mildly in favor. Break of 0.9054 will target 61.8% retracement of 0.9499 to 0.8670 at 0.9182 first. However, considering, bearish divergence condition in 4 hour MACD, firm break of 0.8880 will argue that rebound from 0.8670 has completed. 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.
