Daily Pivots: (S1) 0.8419; (P) 0.8467; (R1) 0.8493; More…
EUR/GBP’s break of 0.8455 indicates resumption of fall from 0.8851. Such decline is seen as the third leg of the corrective pattern from 0.9304. Intraday bias is back on the downside for 0.8303 support first. Break will confirm our view and target 0.8116 key cluster support level. On the upside, break of 0.8590 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay cautiously bearish in case of recovery.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. 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. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).
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