Daily Pivots: (S1) 0.8945; (P) 0.8964; (R1) 0.8990; More…
EUR/GBP’s rally should have resumed by breaking 0.8974 resistance. Intraday bias is back on the upside. Current rally from 0.8472 is in progress for 0.9101 key resistance next. On the downside, break of 0.8872 support is needed to indicate short term topping. Otherwise, near term outlook will remain bullish in case of retreat.
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 0.8527). 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.
