EUR/GBP found a corrective low at 0.8689 as we expected and has started a new clime higher. The first minor hurdle to conquer is seen at 0.8814 and above here will confirm a full test of key resistance at 0.8866, which needs to be broken to finally confirm the corrective decline from 0.9499 has completed and a new impulsive rally to above 0.9499 is in motion.
Short-term we see support at 0.8725 which is expected to protect the downside for the test of 0.8814 and above.
R3: 0.8866
R2: 0.8814
R1: 0.8758
Pivot: 0.8725
S1: 0.8689
S2: 0.8670
S3: 0.8621
Trading recommendation:
We are long EUR from 0.8765 with our stop placed at 0.8670.
