Daily Pivots: (S1) 0.8533; (P) 0.8553; (R1) 0.8570; More…
EUR/GBP’s break of 0.8537 support indicate resumption of decline from 0.9291. Such decline is seen as the third leg of the pattern from 0.9499. Intraday bias is back on the downside for 0.8276 key support level. We’d look for bottoming signal as it approaches this support. Nevertheless, break of 0.8644 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
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 medium term outlook bearish.
