Daily Pivots: (S1) 0.8850; (P) 0.8871; (R1) 0.8897; More…
EUR/GBP continues to lose downside momentum as seen in 4 hour MACD. But with 0.8935 minor resistance intact, deeper decline is still expected. However, downside should be contained by 61.8% retracement of 0.8620 to 0.9097 at 0.8802 to form a short term bottom and bring rebound. On the upside, break of 0.8935 resistance will indicate short term bottoming and bring stronger rebound back towards 0.9051 resistance.
In the bigger picture, EUR/GBP is staying in long term range pattern from 0.9304 (2016 high). At this point, there is no clear sign of range break out yet. And more corrective trading would continue. On the upside, in case of another rise, we’d stay cautious on strong resistance from 0.9304/5 to limit upside in case of further rally. Meanwhile, if there is another medium term decline, strong support will likely be seen from 0.8303 to contain downside.
