EUR/GBP broke below short-term important support at 0.9000. It may dip to 0.8946 before the next rally to the short-term important resistance at 0.9068 which confirms renewed upside pressure.
The break below short-term key support at 0.9000 indicates a temporary bearish count. This count calls for a continuation lower to 0.8347 before the decline from 0.9500 finally is completed and a new bullish rally can take place.
For now, we will stick to a bullish scenario. However, a break below 0.8864 will change the preferred count to the bearish count.
R3: 0.9176
R2: 0.9120
R1: 0.9068
Pivot: 0.9000
S1: 0.8946
S2: 0.8912
S3: 0.8864
Trading recommendation:
Our stop at 0.8985 was hit for a nice 225 pips profit. We will buy EUR again at 0.8946 or upon a break above 0.9068. If we get our buy order at 0.8946 filled we will place our stop at 0.8860.
