Daily Pivots: (S1) 0.8704; (P) 0.8734; (R1) 0.8754; More…
EUR/GBP drops sharply to as low as 0.8712 so far but it’s still staying in range of 0.8666/8796. Intraday bias remains neutral first. 0.8666/86 is seen as an important support zone. But break of 0.8666 will resume whole fall from 0.9305 and target 0.8312 key support. On the upside, above 0.8796 will resume the rebound from 0.8666 and target 61.8% retracement of 0.8967 to 0.8666 at 0.8852 and above.
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.
