Daily Pivots: (S1) 0.8928; (P) 0.8944; (R1) 0.8960; More…
EUR/GBP’s break of 4 hour 55 EMA suggests that rebound from 0.8670 has completed at 0.9000, after hitting 38.2% retracement of 0.9499 to 0.8670 at 0.8987. Intraday bias is back on the downside for 55 day EMA (now at 0.8802). Break will target a test on 0.8670 support. On the upside, sustained break of 0.8987 will indicate completion of whole fall from 0.9499. Further rally should be seen to 61.8% retracement at 0.9182 and above.
In the bigger picture, while the pull back from 0.9499 is deep, there is no sign of trend reversal yet. The up trend from 0.6935 (2015 low) should resume at a later stage to 61.8% projection of 0.6935 to 0.9263 from 0.8276 at 0.9715. This will remain the favored case as long as 0.8276 support holds.
