Daily Pivots: (S1) 0.8721; (P) 0.8742; (R1) 0.8767; More…
Breach of 0.8757 minor resistance argues that EUR/GBP formed a short term bottom at 0.8666 after failing to sustain below 0.8686. Intraday bias is turned back to the upside for 38.2% retracement of 0.8967 to 0.8666 at 0.8781 first. Break will target 61.8% retracement at 0.8852 and above. On the downside, firm break of 0.8666 will resume the decline from 0.9305 and pave the way to 0.8303 key support zone next.
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.
