Daily Pivots: (S1) 0.8498; (P) 0.8522; (R1) 0.8552; More…
EUR/GBP is still bounded in range of 0.84689/8643 and intraday bias remains neutral. We maintain that price actions from 0.8460 is corrective in nature. And fall from 0.8851 is still in progress. Indeed, such decline is seen as is the third leg of the corrective pattern from 0.9304. Break of 0.8469 will target 0.8303 low next.
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).
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