Daily Pivots: (S1) 0.8669; (P) 0.8709; (R1) 0.8739; More…
EUR/GBP’s strong rebound today now put focus back to 0.8790 resistance. Break will resume the rebound from 0.8620, and revive the case of near term reversal. In that case, further rise should be seen to 0.8967 (50% retracement of 0.9305 to 0.8620 at 0.8963) next. On the downside, below 0.8679 will turn bias to the downside for 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.
