Daily Pivots: (S1) 0.8864; (P) 0.8884; (R1) 0.8918; More…
EUR/GBP’s rally resumes by breaking 0.8902 temporary top and reaches as high as 0.8929 so far. Intraday bias is back on the upside for 0.9101 key resistance next. On the downside, break of 0.8829 support will turn bias neutral and bring more consolidations first.
In the bigger picture, medium term decline from 0.9305 (2017 high) is seen as a corrective move. No change in this view. Current development argues that it might have completed with three waves down to 0.8472, just ahead of 38.2% retracement of 0.6935 (2015 low) to 0.9306 at 0.8400, after hitting 55 month EMA (now at 0.8526). Decisive break of 0.9101 resistance will confirm this bullish case. Nevertheless, as EUR/GBP is still staying inside long term falling channel, correction from 0.9305 could still extend to 0.8400 fibonacci level before completion, if upside is rejected by 0.9101.
