Daily Pivots: (S1) 0.8928; (P) 0.8944; (R1) 0.8960; More…
Focus is now on 4 hour 55 EMA in EUR/GBP. Rebound form the current level should resume the rebound from 0.8670. Firm break of 38.2% retracement of 0.9499 to 0.8670 at 0.8987 will indicate completion of whole fall from 0.9499. Further rally should be seen to 61.8% retracement at 0.9182 and above. However, sustained break of 4 hour 55 EMA (now at 0.8912) will suggest completion of rebound from 0.8670. Intraday bias will be turned back to the downside for retesting 0.8670 low.
In the bigger picture, while the pull back from 0.9499 is deep, there is no sign of trend reversal yet. The up trend from 0.6935 (2015 low) should resume at a later stage to 61.8% projection of 0.6935 to 0.9263 from 0.8276 at 0.9715. This will remain the favored case as long as 0.8276 support holds.
