Low volatility and range-trading is dominating the picture here. In the last 24 hours, EUR/GBP has been trading in a narrow range between 0.8688 - 0.8725, but this low volatility trading is likely a precursor for upside acceleration once minor resistance at 0.8734 and more importantly resistance at 0.8769 is broken. Ultimately, we are looking for a rally above 0.9499. When this corrective decline from 0.8867 is completed, the next impulsive rally takes hold.
Only an unexpected break below 0.8675 will change the 0.8621 corrective target.
R3: 0.8867
R2: 0.8769
R1: 0.8737
Pivot: 0.8724
S1: 0.8709
S2: 0.8675
S3: 0.8621
Trading recommendation:
We are long EUR from 0.8675 with our stop placed at 0.8670. An unexpected break might occur below 0.8670. We will re-buy EUR at 0.8630
The material has been provided by InstaForex Company - www.instaforex.com