Daily Pivots: (S1) 0.8508; (P) 0.8537; (R1) 0.8564; More

Intraday bias in EUR/GBP remains neutral as it’s bounded in tight range between 0.8483/8604. There is no change in the view that price actions from 0.8303 are a consolidation pattern. And, it’s the second leg of the correction from 0.9304. Below 0.8430 will target 0.8402. Break of 0.8402 will resume the fall from 0.9304 to 0.8116/20 cluster support, where the correction should end. On the upside, above 0.8604 minor resistance will bring another recovery before fall from 0.9304 resumes.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Such decline is likely ready to resume and should make a new low below 0.8303. At this point, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Break of 0.9304 will pave the way to 0.9799 (2008 high). However, sustained break of 0.8116 could bring deeper decline to next key support level at 0.7564 before the correction completes.

- advertisement -

EUR/GBP 4 Hours Chart

EUR/GBP Daily Chart

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.