Daily Pivots: (S1) 0.8828; (P) 0.8852; (R1) 0.8870; More…
EUR/GBP’s strong break of 0.8847 support invalidated our view. Fall from 0.9097 has resumed and intraday bias is back on the downside for 61.8% retracement of 0.8620 to 0.9097 at 0.8802 first. Sustained break there will target 0.8620 support and possibly below. On the upside, break of 0.8917 resistance is needed to indicate short term bottoming. Otherwise, near term outlook will now remain cautiously bearish.
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.
