Daily Pivots: (S1) 0.8969; (P) 0.8985; (R1) 0.9011; More…
EUR/GBP’s break of 0.9010 indicates resumption of larger rise from 0.8472. Intraday bias is back on the upside for 0.9101 resistance. 4 hour MACD is showing sign of pick up in momentum. But daily MACD remains weak. Thus, we’d be cautious on topping below 0.9101. On the downside, break of 0.8954 support will indicate short term topping. In this case, deeper pull back could be seen to 55 day EMA (now at 0.8869) 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 0.8545). 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.
