Daily Pivots: (S1) 0.8972; (P) 0.8997; (R1) 0.9018; More…
EUR/GBP’s sharp fall, break of channel support and 0.8937 suggests short term topping at 0.9097. More importantly, considering the choppy corrective structure, whole rise from 0.8620 might be finished too. Intraday bias is now on the downside with focus on 38.2% retracement of 0.8620 to 0.9097 at 0.8915. Firm break there will affirm our bearish view and target 61.8% retracement at 0.8802 and below. On the upside, though, above 0.9005 minor resistance will turn focus back to 0.9097 high instead.
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.
