Daily Pivots: (S1) 0.8591; (P) 0.8623; (R1) 0.8649; More…
Intraday bias in EUR/GBP remains neutral first, and risk stays on the upside as long as 0.8537 support holds. Break of 0.8729 will resume the rebound to 55 day EMA (now at 0.8798). Sustained break there will argue that fall from 0.9291, as the third leg of the pattern from 0.9499, has completed. However, firm break of 0.8537 will resume the decline towards 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.
