Daily Pivots: (S1) 0.9238; (P) 0.9252; (R1) 0.9276; More
EUR/GBP’s rally is still in progress and intraday bias stays on the upside for 0.9304 key resistance. We’d remain cautious on rejection from 0.9304 to extend the medium term consolidation pattern. Break of 0.9184 will turn bias back to the downside for pull back to 55 day EMA (now at 0.8959). However, sustained break of 0.9304 will confirm up trend resumption and pave the way to 0.9799.
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. Firm break of 0.9799 high will target 61.8% projection of 0.5680 to 0.9799 from 0.6935 at 1.1054.
