Daily Pivots: (S1) 0.8767; (P) 0.8803; (R1) 0.8830; More
EUR/GBP’s break of 0.8773 suggests resumption of fall from 0.9305. Intraday bias is back on the downside for 61.8% retracement of 0.8312 to 0.9305 at 0.8691 and below. Such decline is seen as the third leg of consolidation pattern from 0.9304. We’ll look for bottoming signal again at it approaches 0.8303 support. However, break of 0.8884 minor resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It’s still in progress with fall from 0.9305 as the third leg. Break of 0.8303 could be seen. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.
