EUR/GBP remains locked in a very narrow trading-range between 0.8682 - 0.8726. We expect an ultimate break to the downside for a test of our ideal target at 0.8621. It is likely to lead to the corrective decline from 0.9499 and set the stage for a new impulsive rally to above 0.9499.
Only a direct break above minor resistance at 0.8793 will confirm that wave 2 is completed and wave 3 is in motion.
R3: 0.8765
R2: 0.8745
R1: 0.8739
Pivot: 0.8702
S1: 0.8685
S2: 0.8650
S3: 0.8621
Trading recommendation:
We will buy EUR at 0.8635 or upon a break above 0.8765
