Daily Pivots: (S1) 0.8318; (P) 0.8335; (R1) 0.8345; More…
EUR/GBP spiked lower to 0.8282 but recovered strong just ahead of 0.8276 key long term support. Intraday bias remains neutral first. On the upside, firm break of 0.8421 resistance should now will be a sign of bullish reversal. Further rise would be seen back to 0.8598 structural resistance for confirmation. However, sustained break of 0.8276 will carry larger bearish implication and could prompt downside acceleration.
In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8598 resistance holds, towards long term support at 0.8276. We’d look for bottoming signal around there to bring reversal. Meanwhile, firm break of 0.8598 will now be an early sign of medium term bottoming and bring stronger rebound. However, sustained break of 0.8276 will argue that the long term trend has reversed.
