Daily Pivots: (S1) 0.8713; (P) 0.8741; (R1) 0.8794; More…
EUR/GBP’s strong rebound and firm break of 0.8739 indicates near term reversal. And whole decline from 0.9305 has likely completed after hitting 61.8% projection of 0.9305 to 0.8745 from 0.8967 at 0.8621. Intraday bias is back on the upside for 0.8796 first. Firm break there will target key cluster resistance at 0.8967 (50% retracement of 0.9305 to 0.8620 at 0.8963) next. On the downside, break of 0.8688 minor support will dampen the bullish case and turn focus back to 0.8620 instead.
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.
