Daily Pivots: (S1) 0.8625; (P) 0.8640; (R1) 0.8661; More…
EUR/GBP is still extending consolidation from 0.8752 short term top and intraday bias stays neutral. Downside should be contained by 38.2% retracement of 0.8354 to 0.8752 at 0.8600. On the upside, firm break of 0.8752 will resume the rise from 0.8354 towards 0.8867 fibonacci level. However, sustained break of 0.8600 will indicate near term reversal and target 61.8% retracement at 0.8506.
In the bigger picture, the structure from 0.8221 medium term bottom are not impulsive enough to suggest that it’s reversing the down trend from 0.9267 (2022 high). But even if it’s a correction, further rise is expected to 61.8% retracement of 0.9267 to 0.8221 at 0.8867. This will remain the favored case as long as 55 W EMA (now at 0.8497) holds.
