Daily Pivots: (S1) 0.8559; (P) 0.8579; (R1) 0.8604; More…

EUR/GBP recovers ahead of 0.8537 low but upside momentum is weak so far. Intraday bias remains neutral first. On the upside, break of 0.8650 minor resistance will turn bias to the upside for 0.8729 resistance. Firm break there will reaffirm the case of short term bottoming, and bring stronger rebound for 0.8861 support turned resistance. On the downside, firm break of 0.8537 will resume the decline from 0.9291, and that from 0.9499, towards 0.8276 key support.

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. However, firm break of 0.8276 support will suggest that rise from 0.6935 has completed and turn outlook bearish.

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