Daily Pivots: (S1) 0.8850; (P) 0.8871; (R1) 0.8897; More…
EUR/GBP surges strongly to as high as 0.8984 and takes our 0.8935 minor resistance decisively. The strong upside momentum, with bullish convergence condition in 4 hour MACD, argues that pull back from 0.9097 has completed at 0.8847 already. The corrective structure in turns carries bullish implication. Intraday bias is back on the upside for 0.9051/9097 resistance zone next. Break will resume whole choppy rise from 0.8620
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). At this point, there is no clear sign of range break out yet. And more corrective trading would continue. On the upside, in case of another rise, 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.
