Daily Pivots: (S1) 0.8634; (P) 0.8665; (R1) 0.8703; More….
Immediate focus is now on 0.8700 resistance in EUR/GBP. Rejection by this resistance will maintain bearish outlook that larger down trend is not over. Break of 0.8625 minor support will turn bias back to the downside for 0.8568 support first. However, sustained break of 0.8700 will carry larger bullish implication and bring stronger rally.
In the bigger picture, the down trend from 0.9267 (2022 high) is seen as part of the long term range pattern from 0.9499 (2020 high). Fall from 0.8977 is seen as the third leg. As long as 0.8700 resistance holds, further decline is still expected. Break of 0.8491 will resume the fall towards 0.8201 (2022 low). Nevertheless, firm break of 0.8700 will now be a sign of bullish reversal.
