Daily Pivots: (S1) 0.8474; (P) 0.8493; (R1) 0.8513; More…
EUR/GBP’s break of 0.8532 minor support suggests temporary bottoming at 0.8470. Intraday bias is turned neutral first. But outlook will stay bearish as long as 0.8644 resistance holds. Break of 0.8470 will extend larger fall from 0.9499 to 0.8276 key support. However, firm break of 0.8644 should confirm short term bottoming and turn bias back to the upside for stronger rebound.
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.
