Daily Pivots: (S1) 0.8875; (P) 0.8899; (R1) 0.8920; More…
For now, with 0.8829 minor support intact, further rise is expected in EUR/GBP to 0.9101 key resistance next. As upside momentum is diminishing as seen in 4 hour MACD, we’d be cautious on strong resistance from there to limit upside to bring retreat. On the downside, though, break of 0.8829 support will indicate short term topping and bring lengthier consolidation before staging another rise.
In the bigger picture, medium term decline from 0.9305 (2017 high) is seen as a corrective move. No change in this view. Current development argues that it might have completed with three waves down to 0.8472, just ahead of 38.2% retracement of 0.6935 (2015 low) to 0.9306 at 0.8400, after hitting 55 month EMA (now at 0.8526). Decisive break of 0.9101 resistance will confirm this bullish case. Nevertheless, as EUR/GBP is still staying inside long term falling channel, correction from 0.9305 could still extend to 0.8400 fibonacci level before completion, if upside is rejected by 0.9101.
