Daily Pivots: (S1) 0.8972; (P) 0.8995; (R1) 0.9034; More…
EUR/GBP’s rally continues today and reaches as high as 0.9029 so far. Intraday bias stays on the upside for 61.8% retracement of 0.9305 to 0.8620 at 0.9043. Sustained break there will pave the way to retest 0.9305 high. On the downside, below 0.8984 minor support will turn intraday bias neutral first. But retreat should be contained well above 0.8845 support to bring another rally.
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.
