Daily Pivots: (S1) 0.8752; (P) 0.8784; (R1) 0.8813; More…
EUR/GBP recovered to 0.8813 but quickly retreated. Intraday bias stays neutral first. On the downside, below 0.8720 will resume the fall from 0.8896 to 61.8% retracement of 0.8545 to 0.8896 at 0.8679. Sustained break there will pave the way back to retest 0.8545 low. On the upside, though, above 0.8813 will bring retest of 0.8896 resistance.
In the bigger picture, current development argues that rebound from 0.8545 is merely a correction to fall from 0.9267. Sustained trading below 55 day EMA (now at 0.8748) will affirm this bearish case and target 0.8545 and below. Nevertheless, strong rebound from current level will retain near term bullishness for another rise through 0.8896 later.
