Daily Pivots: (S1) 0.8797; (P) 0.8817; (R1) 0.8828; More…
EUR/GBP’s decline accelerates to as low as 0.8744 so far. Break of 0.8771 support confirms confirm completion of rebound from 0.8686 at 0.8967. Intraday bias stays on the downside on the downside for retesting 0.8686 key near term support. We’d be cautious on strong support from there to bring another rebound. But decisive break of 0.8686 will resume whole fall from 0.9305 and target 0.8303 key support next. On the upside, above 0.8815 minor resistance will turn bias neutral and bring consolidation first, before staging another fall.
In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. 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.
