Daily Pivots: (S1) 0.8946; (P) 0.8967; (R1) 0.9008; More…
EUR/GBP strong rally and break of 0.9051 resistance indicates resumption of whole rise from 0.8472. Intraday bias is back on the upside for 0.9101 key resistance. Sustained break there will carry larger bullish implication and target 0.9305 next. On the downside, break of 0.8891 support is now needed to indicate short term topping. Otherwise, outlook will remain bullish in case off 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 0.8545). Decisive break of 0.9101 resistance will confirm this bullish case. And this will be the preferred case as long as 55 week EMA (now at 0.8801) holds.
