Daily Pivots: (S1) 0.8937; (P) 0.8952; (R1) 0.8982; More…
EUR/GBP surges to as high as 0.8983 so far today. The solid break of 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963) firstly indicates resumption of rise from 0.8620. It also confirms completion of whole decline from 0.9305. Intraday bias is back on the upside for 61.8% retracement at 0.9043 next. On the downside, below 0.8936 minor support will turn intraday bias neutral first. But outlook will remain bullish as long as 0.8854 support holds and further rise is expected.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). The corrective structure of the fall from 0.9305 to 0.8620 is raising the chance that rise from 0.8312 to 0.9305 is an impulsive move. But we’re not too confident on it yet. In any case, we’d stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
