Daily Pivots: (S1) 0.8630; (P) 0.8665; (R1) 0.8689; More…

EUR/GBP’s decline continues today and hits as low as 0.8640 so far. Intraday bias remains on the downside. Current fall is seen as part of the corrective pattern from 0.9499. Next target is 161.8% projection of 0.9291 to 0.8861 from 0.9229 at 0.8533. We’ll look for bottoming signal around there. On the upside, break of 0.8790 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.

In the bigger picture, we’re seeing the price actions from 0.9499 as developing into a corrective pattern. That is, up trend from 0.6935 (2015 low) would resume at a later stage. This will remain the favored case as long as 0.8276 support holds. Decisive break of 0.9499 will target 0.9799 (2008 high).

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