Daily Pivots: (S1) 0.8590; (P) 0.8622; (R1) 0.8638; More…
EUR/GBP drops to as low as 0.8537 so far, just inch above 161.8% projection of 0.9291 to 0.8861 from 0.9229 at 0.8533. We’d pay attention to bottoming signal around current level. Break of 0.8653 minor resistance will turn bias to the upside for rebound, back towards 0.8737 resistance. However, sustained break of 0.8533 could carry larger bearish implications and target 0.8276 key support.
In the bigger picture, we’re seeing the price actions from 0.9499 as developing into a corrective pattern. That is, up trend from 0.6935 (2015 low) would resume at a later stage. This will remain the favored case as long as 0.8276 support holds. However, firm break of 0.8276 support will suggest that rise from 0.6935 has completed and turn outlook bearish.
