EUR/GBP failed to break above important resistance at 0.8866 and the following break below the former low at 0.8727 confirmed that wave 2 still is in motion. The new possible downside target is the bottom of wave iv at 0.8621 from where a new impulsive rally should be expected.
Only a direct break above 0.8736 and more importantly a clear break above resistance at 0.8765 will indicate a bottom already is in place and a new impulsive rally can begin.
R3: 0.8765
R2: 0.8745
R1: 0.8736
Pivot: 0.8702
S1: 0.8685
S2: 0.8650
S3: 0.8621
Trading recommendation:
We will buy EUR at 0.8635 or upon a break above 0.8765