Daily Pivots: (S1) 0.8793; (P) 0.8811; (R1) 0.8829; More…
EUR/GBP’s strong break of 0.8844 resistance indicates that rebound from 0.8620 has finally resumed. Intraday bias is back on the upside for 0.8967 cluster resistance (50% retracement of 0.9305 to 0.8620 at 0.8963). Firm break there will confirm trend reversal for 0.9305 key resistance. On the downside, break of 0.8724 is now needed to indicate near term reversal. Otherwise, outlook will remain bullish even in case of deep retreat.
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.
