Daily Pivots: (S1) 0.8608; (P) 0.8671; (R1) 0.8720; More…
EUR/GBP’s break of 0.8604 minor support indicates resumption of fall from 0.8786. Intraday bias is back on the downside for 0.8402 support next. Price actions from 0.8303 are forming a corrective pattern, as the second leg of the correction from 0.9304. Break of 0.8402 will extend the correction from 0.9304 through 0.8303 low. In that case, we’d expect strong support from 0.8116 cluster support to contain downside and bring rebound.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. 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. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).
