Daily Pivots: (S1) 0.8565; (P) 0.8582; (R1) 0.8595; More…
EUR/GBP’s decline from 0.8681 is extending lower but it’s staying in range of 0.8472/8722. Intraday bias remains neutral and more consolidation could be seen. In case of another rise, upside should be limited by 0.8722 resistance. On the downside, firm break of 0.8472 will resume larger down trend for 0.8416 long term projection next. On the upside, though, sustained break of 0.8722 will suggest near term reversal and bring stronger rise back to 0.8840 resistance and above.
In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Current fall from 0.9305 (2017 high) is a falling leg inside the pattern. Such decline could extend to 100% projection of 0.9305 to 0.8620 from 0.9101 at 0.8416 and possibly below. But for now, we’d expect strong support around 0.8312 support to contain downside and bring rebound.
