Daily Pivots: (S1) 0.8630; (P) 0.8678; (R1) 0.8705; More…
EUR/GBP drops to as low as 0.8617 and breached 0.8620 key support. At this point, we’d continue to expect strong support from 0.8620 to contain downside to bring rebound On the upside, above 0.8725 minor resistance will turn bias to the upside for 0.8763/8862 resistance zone first. However, sustained break of 0.8620 will resume larger decline from 0.9305 and target 100% projection of 0.9305 to 0.8620 from 0.9101 at 0.8416.
In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). The medium term range is set between 0.8620 and 0.9101. Downside break out of 0.8620 will pave the way back to 0.8302/12 support zone. Break of 0.9101 will bring retest of 0.9304/5 resistance.
