Daily Pivots: (S1) 0.8669; (P) 0.8709; (R1) 0.8739; More…
Intraday bias in EUR/GBP remains on the downside for the moment. Rebound from 0.8620 should have completed at 0.8790 already. Deeper fall would be seen back to 0.8620 low. As EUR/GBP was rejected by falling 55 day EMA, recent decline is possibly still in progress. Break of 0.8620 will resume the whole fall from 0.9305 and target 0.8303/12 support zone. On the upside, though, above 0.8796 will resume the rebound from 0.8620 instead.
In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
