EUR/GBP Mid-Day Outlook

Daily Pivots: (S1) 0.8790; (P) 0.8820; (R1) 0.8882; More…

EUR/GBP’s break of 0.8863 resistance indicates short term bottoming at 0.8670. Intraday bias is turned back to the upside for 38.2% retracement of 0.9499 to 0.8670 at 0.8987. Fall from 0.9499 is seen as a corrective move only, which couldn’t sustain below 55 day EMA so far. Break of 0.8987 should target 61.8% retracement at 0.9182 and above. On the downside, though, break of 0.8807 minor support will turn bias neutral again first.

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In the bigger picture, while the pull back from 0.9499 is deep, there is no sign of trend reversal yet. The up trend from 0.6935 (2015 low) should resume at a later stage to 61.8% projection of 0.6935 to 0.9263 from 0.8276 at 0.9715. This will remain the favored case as long as 0.8276 support holds.

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