Daily Pivots: (S1) 0.8363; (P) 0.8391; (R1) 0.8410; More…
EUR/GBP’s break of 0.8379 confirms resumption of larger down trend of 0.9499. Despite some loss of downside momentum as seen in 4 hour MACD, further decline is expected as long as 0.8462 resistance holds. Next target is 0.8276 key long term support. Nevertheless, break of 0.8462 will turn bias back to the upside for 0.8549 resistance instead.
In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8598 resistance holds, towards long term support at 0.8276. We’d look for bottoming signal around there to bring reversal. Meanwhile, firm break of 0.8598 will now be an early sign of medium term bottoming and bring stronger rebound.
