Daily Pivots: (S1) 0.8539; (P) 0.8590; (R1) 0.8618; More…
EUR/GBP dropped sharply after failing to sustain above 0.8638 resistance. Intraday bias remains neutral and outlook stays bearish for now. On the downside, firm break of 0.8532 will resume whole decline form 0.9499, for 0.8276 key support. On the upside, break of 0.8644 minor resistance should turn bias to the stronger rebound to 55 day EMA (now at 0.8705).
In the bigger picture, we’re seeing the price actions from 0.9499 as developing into a corrective pattern. That is, up trend from 0.6935 (2015 low) would resume at a later stage. This will remain the favored case as long as 0.8276 support holds. However, firm break of 0.8276 support will suggest that rise from 0.6935 has completed and turn outlook bearish.
