Daily Pivots: (S1) 0.8704; (P) 0.8717; (R1) 0.8727; More…
Intraday bias in EUR/GBP stays neutral and more consolidations could be seen below 0.8750. On the downside, break of 0.8688 will extend the from 0.8750 fall to 0.8631 support. Decisive break there will indicate near term bearish reversal. On the upside, though, above 0.8750 will resume the larger rally towards 0.8867 fibonacci level.
In the bigger picture, rise from 0.8221 medium term bottom is seen as a corrective move. While further rally cannot be ruled out, upside should be limited by 61.8% retracement of 0.9267 to 0.8221 at 0.8867. Considering bearish divergence condition in D MACD, firm break of 0.8631 support will be the first sign that this corrective bounce has completed. Sustained trading below 55 W EMA (now at 0.8539) will confirm, and bring retest of 0.8221 low.
