Daily Pivots: (S1) 0.8594; (P) 0.8628; (R1) 0.8675; More…
Focus stays on 0.8644 resistance in EUR/GBP. Firm break there will confirm short term bottoming. Further rise should be seen to 38.2% retracement of 0.9291 to 0.8470 at 0.8784. On the downside, break of 0.8470 will extend the whole pattern from 0.9499 to 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 medium term outlook bearish.
