Daily Pivots: (S1) 0.8706; (P) 0.8745; (R1) 0.8804; More…
EUR/GBP recovered after forming a temporary low at 0.8686, drawing support from 0.8688. Intraday bias is turned neutral first. Stronger recovery could be seen. But outlook will stay bearish as long as 0.8928 resistance holds. Break of 0.8688 will resume whole decline from 0.9305. As 61.8% retracement of 0.8312 to 0.9305 should then be taken out too. Deeper decline would be seen to retest 0.8303/8312 support zone.
In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
