EUR/GBP Mid-Day Outlook
Daily Pivots: (S1) 0.8708; (P) 0.8759; (R1) 0.8804; More…
EUR/GBP drops to as low as 0.8627 so far and intraday bias remains on the downside. Current fall from 0.9324 should now target 100% projection of 0.9324 to 0.8786 from 0.9019 at 0.8481. On the upside, break of 0.8811 minor resistance is needed to indicate short term bottoming. Otherwise, further decline is expected in case of recovery.
In the bigger picture, we’re now seeing 0.9324 as a medium term top on bearish divergence condition in weekly MACD. Price actions from there should develop into a corrective pattern. Deeper fall should be seen back to 38.2% retracement of 0.6935 to 0.9324 at 0.8411 but strong support should be seen there, at least on first attempt. On the upside, break of 0.9324 is needed to confirm up trend resumption. Otherwise, risk will stay on the downside even in case of strong rebound.