Daily Pivots: (S1) 0.8857; (P) 0.8883; (R1) 0.8929; More…
EUR/GBP surges to as high as 0.8950 today. The break of 0.8928 resistance now indicates medium term reversal. That is fall from 0.9305 has completed at 0.8868 after drawing support from 61.8% retracement of 0.8312 to 0.9305. Intraday bias is now on the upside for 61.8% retracement of 0.9305 to 0.8686 at 0.9069. Firm break there will target retest of 0.9305 high. On the downside, below 0.8877 minor support will turn intraday bias neutral again.
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.
