Daily Pivots: (S1) 0.8629; (P) 0.8645; (R1) 0.8669; More…
EUR/GBP attempted to break 61.8% projection of 0.9305 to 0.8745 from 0.8967 at 0.8621 but quickly recovered. Intraday bias remains neutral for more consolidative trading. In case of stronger recovery, we’d expect upside to be limited by 0.8739 resistance to bring fall resumption. Firm break of 0.8621 will pave the way to 100% projection at 0.8407.
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 deeper 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.
