Daily Pivots: (S1) 0.8801; (P) 0.8823; (R1) 0.8860; More…
EUR/GBP continues to lose downside momentum as seen in 4 hour MACD. But with 0.8894 minor resistance intact, further fall is expected. Sustained break of 61.8% retracement of 0.8472 to 0.9324 at 0.8797 would pave the way to 0.8472 key support next. On the upside, though, above 0.8894 will indicate short term bottoming, and turn bias to the upside for stronger recovery.
In the bigger picture, the failure to sustain above 0.9305 (2017 high) suggests that consolidation from there is extending. Breach of 0.8472 cannot be ruled out but downside should be contained by 38.2% retracement of 0.6935 (2015 low) to 0.9305 at 0.8400. On the upside, firm break of 0.9327 will confirm up trend resumption.
