Downside of EUR/GBP’s Pull Back

A short term top has been formed at the level of 0.8994. Trading of the cross became neutral. 0.8828 minor support should restrain the downside of a pull back and lead to further rally. Following pivot points include: (S1) 0.8908; (P) 0.8946; (R1) 0.8971.

Breach of 0.8994 will prolong the intact increase from 0.8312 to the maximum of 0.9304. Uptrend restoration is unlikely. Decisive resistance from 0.9304 might bound the upside and cause further decline.

Price behavior from 0.9304 is considered as a medium term corrective pattern, which might be progressing. If further decline occurs, firm support from 0.8116 will fill the downside and cause recoil. The entire uptrend from 0.6935 should expand after the consolidation from 0.9304 ends.