Daily Pivots: (S1) 0.8816; (P) 0.8886; (R1) 0.8922; More…
EUR/GBP dips mildly today and breaches 0.8857 minor support. Intraday bias is turned to the downside for retesting 0.8745 support first. Firm break there will resume whole decline form 0.9305 and target 0.8303 key support level. On the upside, since price actions from 0.8745 is seen as a correction, in case of another rise, upside would be limited by 61.8% retracement of 0.9305 to 0.8745 at 0.9091.
In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of another fall. And in that case, EUR/GBP could have a retest on 0.8303. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
