Daily Pivots: (S1) 0.8866; (P) 0.8895; (R1) 0.8917; More…
EUR/GBP is staying in consolidation from 0.8974 and intraday bias remains neutral first. With 0.8871 minor support intact, further rise is still in favor. On the upside, above 0.8974 will resume the rise from 0.8472 and target 0.9101 key resistance next. However, considering bearish divergence condition in 4 hour MACD, break of 0.8871 minor support will indicate short term topping and bring deeper pull back towards 55 day EMA (now at 0.8775).
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 0.8527). 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.
