Daily Pivots: (S1) 0.8409; (P) 0.8445; (R1) 0.8505; More…
Intraday bias in EUR/GBP remains on the upside with focus on 0.8476 structural resistance. Decisive break there should confirm medium term bottoming at 0.8201, with a head and shoulder bottom pattern too (ls: 0.8282, h: 0.8201, rs: 0.8294). In this case, near term outlook will turn bullish for 0.8697 fibonacci level next. On the downside, however, below 0.8398 minor support will mix up the outlook and turn intraday bias neutral first.
In the bigger picture, the down trend from 0.9499 is expected to continue as long as 0.8476 resistance holds. Sustained trading below 0.8276 support will argue that the whole up trend from 0.6935 (2015 low) has reversed. Deeper fall should be seen to 61.8% retracement of 0.6935 to 0.9499 at 0.7917 next. However, firm break of 0.8476 will indicate medium term bottoming at least, on bullish convergence condition in daily and weekly MACD. Stronger rally would be seen back to 38.2% retracement of 0.9499 to 0.8201 at 0.8697.
