Daily Pivots: (S1) 0.8523; (P) 0.8592; (R1) 0.8628; More…
Intraday bias in EUR/GBP remains on the downside for 0.8402 support. Break of 0.8402 will extend the correction from 0.9304 with the third leg. In that case, we’d expect strong support from 0.8116 cluster support to contain downside and bring rebound. On the upside, though, above 0.8604 minor resistance will turn bias neutral first.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).
