Daily Pivots: (S1) 0.8461; (P) 0.8476; (R1) 0.8498; More…
Further fall is expected in EUR/GBP despite loss of downside momentum. Sustained break of 0.8448 low will resume larger down trend from 0.9499, towards 0.8276 key support. On the upside, break of 0.8516 resistance will indicate short term bottoming, and bring stronger rebound towards 55 day EMA (now at 0.8543).
In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8668 resistance holds, towards long term support at 0.8276. However, firm break of 0.8668 resistance would argue that a medium term bottom was already formed. Stronger rise would be seen to 0.8861 support turned resistance to confirm completion of the corrective pattern.
Read More: EUR/GBP Daily Outlook – Action Forex