Daily Pivots: (S1) 0.8809; (P) 0.8826; (R1) 0.8842; More…
EUR/GBP’s rally resumes by taking out 0.8850 and reaches as high as 0.8874 so far. Intraday bias is back on the upside. Further rise should now be seen back to retest 0.9101 key resistance. On the downside, break of 0.8790 minor support will turn bias neutral and bring consolidations again.
In the bigger picture, medium term decline from 0.9305 (2017 high) is seen as a corrective move. No change in this view. Current development argues that it might have completed with three waves down to 0.8472, just ahead of 38.2% retracement of 0.6935 (2015 low) to 0.9306 at 0.8400, after hitting 55 month EMA (now at 0.8511). Decisive break of 0.9101 resistance will confirm this bullish case. Nevertheless, as EUR/GBP is still staying inside long term falling channel, correction from 0.9305 could still extend to 0.8400 fibonacci level before completion.
