EUR/GBP is likely in a bottoming phase and we are looking for a break above minor resistance at 0.8988 that will be a strong indication that the corrective decline in wave iv has completed and wave v higher to the ideal target at 0.9242 is developing.
As long as minor resistance at 0.8988 is able to cap the upside, we could see a final spike to just below 0.8865 to like 0.8856 to complete the corrective decline in wave iv and to set the stage for a new impulsive rally in wave v.
R3: 0.9121
R2: 0.9040
R1: 0.8988
Pivot: 0.8962
S1: 0.8900
S2: 0.8865
S3: 0.8856
Trading recommendation:
We are long EUR from 0.8900 with our stop placed at 0.8800.
