Daily Pivots: (S1) 0.8672; (P) 0.8689; (R1) 0.8700; More…
EUR/GBP’s fall from 0.8750 is in progress and intraday bias stays on the downside for 0.8631 support. Decisive break there will indicate near term reversal and turn outlook bearish for 38.2% retracement of 0.8221 to 0.8750 at 0.8548. On the upside, above 0.8703 minor resistance will turn intraday bias neutral again first.
In the bigger picture, rise from 0.8221 medium term bottom is seen as a corrective move. While further rally cannot be ruled out, upside should be limited by 61.8% retracement of 0.9267 to 0.8221 at 0.8867. Considering bearish divergence condition in D MACD, firm break of 0.8631 support will be the first sign that this corrective bounce has completed. Sustained trading below 55 W EMA (now at 0.8539) will confirm, and bring retest of 0.8221 low.
