EUR/GBP is now at the cross-road. The corrective target at 0.8946 is being tested. It may protect the downside if our bullish count is correct. A break above minor resistance at 0.9010 and more importantly a break above resistance at 0.9068 is now needed to keep this count our slightly preferred count.
If, however, EUR/GBP fails to hold above support at 0.8946 and more importantly support at 0.8912 the preferred count shifts in favor of wave 2. Another dip towards 0.8347 should be expected before the correction from 0.9500 finally comes to its conclusion and a new impulsive rally starts.
R3: 0.9068
R2: 0.9010
R1: 0.8992
Pivot: 0.8961
S1: 0.8946
S2: 0.8911
S3: 0.8867
Trading recommendation:
We bought EUR at 0.8646 and we will raise our stop to 0.8610.
