Daily Pivots: (S1) 0.8972; (P) 0.8995; (R1) 0.9008; More.

EUR/GBP's rebound was limited at 0.9018 and retreated after hitting near term falling trend line resistance. With 4 hours MACD crossed below signal line, an intraday top is in place and bias is turned neutral. On the downside, below 0.8913 minor support will indicate that recovery from 0.8850 has completed and will flip intraday bias back to the downside for 0.8833 support and below. However, focus will be on reversal signal again as EUR/GBP re-enters into 0.8704/8837 support zone. On the upside, above 0.9018 will bring rise resumption towards 0.9153 resistance first.

In the bigger picture, medium term correction from 0.9799 has completed with three waves down to 0.8399 already and rise from there is tentatively treated as resumption of long term up trend. Such rise should target a test on 0.9799 first after completing the correction from 0.9410, which should be contained by 0.8704 support. Break of 9799 will bring rally to next medium term target at 61.8% projection of 0.6535 to 0.9799 from 0.8399 at 1.0416.

However a break of 0.8704 support will argue that firstly, rise from 0.8399 has completed at 0.9410 already. Secondly, this will indicate that correction from 0.9799 is still in progress for another low below 0.8399 before completion.

EUR/GBP

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