Daily Pivots: (S1) 0.8944; (P) 0.8974; (R1) 0.8996; More…
EUR/GBP drops sharply to as low as 0.8935 so far today. The strong break of 0.8954 support confirms short term topping. Fall from 0.9051 is seen as corrective rise from 0.8489. Intraday bias is back on the downside for 55 day EMA (now at 0.8891) and then 38.2% retracement of 0.8489 to 0.9051 at 0.8836. On the upside, above 0.8954 will turn intraday bias first. But deeper pull back would remain in favor as long as 0.9051 resistance holds.
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. However, firm break of 55 week EMA (now at 0.8805) would possibly extend the correction another another fall to below 0.8472 before completion.
