Daily Pivots: (S1) 0.8793; (P) 0.8811; (R1) 0.8829; More…
EUR/GBP rises to as high as 0.8837 so far with focus now on 0.8844 resistance. Firm break there will confirm resumption of rebound from 0.8620. In such case, further rise to be seen to 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963) next. Rejection by 0.8844 will extend recent sideway trading. Still, further rally is expected as long as 0.8693 support holds.
In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
