Daily Pivots: (S1) 0.8748; (P) 0.8769; (R1) 0.8798; More…
EUR/GBP surges to as high as 0.8837 so far today and the strong break of 0.8808 resistance argues that rise fro 0.8620 is ready to resume. Intraday bias back on the upside for 0.8844 resistance Decisive break there will confirm our bullish view and target 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). On the downside, below 0.8776 minor support will dampen the bullish case again and turn bias neutral.
In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
