Daily Pivots: (S1) 0.8473; (P) 0.8494; (R1) 0.8530; More…
EUR/GBP’s break of 0.8529 resistance confirms resumption of rebound from 0.8312. Intraday bias is back on the upside. Current rise would now target 0.8786 resistance next. On the downside, below 0.8457 minor support will dampen the bullish case and turn focus back to 0.8383 support instead. Overall, price actions 0.9304 are viewed as a medium term corrective pattern that is extending. As EUR/GBP has just defended 0.8303 resistance. Break of 0.8786 could bring a retest on 0.9304 high.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. In case of deeper fall, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Rise from 0.6935 (2015 low) will resume at a later stage to 0.9799 (2008 high). However, sustained break of 0.8116 could bring deeper decline to next key support level at 0.7564 before the correction completes.
