Daily Pivots: (S1) 0.8497; (P) 0.8587; (R1) 0.8640; More…
EUR/GBP drops sharply to as low as 0.8474 so far. The break of 0.8529 confirms resumption of recent decline. Intraday bias is back to the downside for 0.8416 long term projection next. On the upside, break of 0.8676 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Current fall from 0.9305 (2017 high), is a falling leg inside the pattern. Such decline is now targeting 100% projection of 0.9305 to 0.8620 from 0.9101 at 0.8416 and possibly below. But for now, we’d expect strong support around 0.8312 support to contain downside and bring rebound.
