Daily Pivots: (S1) 0.8790; (P) 0.8820; (R1) 0.8882; More…
EUR/GBP’s break of 0.8863 resistance indicates short term bottoming at 0.8670. Intraday bias is turned back to the upside for 38.2% retracement of 0.9499 to 0.8670 at 0.8987. Fall from 0.9499 is seen as a corrective move only, which couldn’t sustain below 55 day EMA so far. Break of 0.8987 should target 61.8% retracement at 0.9182 and above. On the downside, though, break of 0.8807 minor support will turn bias neutral again first.
In the bigger picture, while the pull back from 0.9499 is deep, there is no sign of trend reversal yet. The up trend from 0.6935 (2015 low) should resume at a later stage to 61.8% projection of 0.6935 to 0.9263 from 0.8276 at 0.9715. This will remain the favored case as long as 0.8276 support holds.
