Daily Pivots: (S1) 0.8741; (P) 0.8762; (R1) 0.8791; More…
EUR/GBP surges sharply after BoE rate de3cisio and took out 0.8826 minor resistance decisively. Focus is back on 0.9032 resistance. Firm break there will indicate near term reversal and target a test on 0.9305 high. But before that, the fall from 0.9305 could still resume. And break of 0.8732 will target 0.8303 key support.
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.
