Daily Pivots: (S1) 0.8908; (P) 0.8934; (R1) 0.8975; More…
EUR/GBP recovered after hitting 0.8891 and intraday bias is turned neutral first. Consolidation from 0.9051 could extend further, with another fall. But downside should be contained by 38.2% retracement of 0.8489 to 0.9051 at 0.8836 to bring rebound. Though, break of 0.9051 is needed to confirm rise resumption. Otherwise, such consolidation will likely extend further.
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.
