Daily Pivots: (S1) 0.8777; (P) 0.8842; (R1) 0.8875; More…
No change in EUR/GBP’s outlook. Despite the rally attempt, upside momentum remains unconvincing. Break of 0.8981 resistance is needed to indicate completion of the decline from 0.9305. Otherwise, another fall would be mildly in favor. Below 0.8808 support will turn bias to the downside for 0.8688 support first.
In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. 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.
