Despite a break above minor resistance at 0.8722, EUR/GBP failed to consolidate at this level. It is re-testing the corrective low at 0.8709. We expect this support to protect the downside for a new rally above minor resistance at 0.8749 and more importantly a break above resistance at 0.8769/ It will confirm that a low is in place for a new rally to and above 0.9499.
Only an unexpected break below support at 0.8675 will change the 0.8621 target before the corrective decline from 0.9499 finally occurs and a new rally can begin.
R3: 0.8863
R2: 0.8779
R1: 0.8740
Pivot: 0.8724
S1: 0.8709
S2: 0.8675
S3: 0.8621
Trading recommendation:
We are long EUR from 0.8765 with our stop placed at 0.8670
The material has been provided by InstaForex Company - www.instaforex.com