EUR/GBP needed another stab to test solid support at 0.8866. However, the following break above minor resistance at 0.8939 indicates that the correction in wave ii is complete and a new impulsive rally towards 0.9485 can be expected.
Short-term, we should see support near 0.8883 be able to protect the downside for a break above minor resistance at 0.8959 and more importantly above resistance at 0.9007 that should accellerate the rally higher towards 0.9485.
R3: 0.9007
R2: 0.8975
R1: 0.8959
Pivot: 0.8941
S1: 0.8933
S2: 0.8912
S3: 0.8883
Trading recommendation:
We remain long EUR from 0.8760 with our stop placed at 0.8860.
