Daily Pivots: (S1) 0.8758; (P) 0.8778; (R1) 0.8811; More
EUR/GBP formed a temporary low at 0.8742 and intraday bias is turned neutral first. As noted before, rebound from 0.8312 should have completed at 0.8948 and deeper fall is expected. Below 0.8742 will target 38.2% retracement of 0.8312 to 0.8948 at 0.8705 first. Break will target 61.8% retracement at 0.8555 next. Overall, deeper fall is expected as long as 0.8948 resistance holds.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It’s uncertain whether it is finished yet. But in case of another fall, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside and bring rebound. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.
