Sterling rises broadly in early part of European session, with downside breakout in EUR/GBP. The break of 0.8537 support confirms resumption of the fall from 0.9291, as the third leg of the pattern from 0.9499 high. Deeper decline would now be seen towards 0.8276 key long term support level.
One focus is now 1.2985 short term top in GBP/CHF. Decisive break there will resume the whole medium term rise from 1.1102. In the case, next target will be 161.8% projection of 1.1102 to 1.2259 from 1.1683 at 1.3555. Upside acceleration in GBP/CHF could help push EUR/GPB through above mentioned 0.8276 key support level. We’ll see how it goes.