EUR/GBP rebounded strongly to 0.9083 last week but retreated since then. Initial bias remains neutral this week first. Current development suggests that pull back from 0.9291 has completed at 0.8861. Rise from 0.8670 might be ready to resume. On the upside, above 0.9083 will target a test on 0.9291 resistance next. However, break of 0.8861 will turn near term outlook bearish for 0.8670 instead.
In the bigger picture, at this point, we’re seeing the price actions from 0.9499 as developing into a corrective pattern. That is, up trend from 0.6935 (2015 low) would resume at a later stage. This will remain the favored case as long as 0.8276 support holds. Decisive break of 0.9499 will target 0.9799 (2008 high).
In the long term picture, rise from 0.6935 (2015 low) is still in progress. It could be resuming long term up trend from 0.5680 (2000 low). Break of 0.9799 (2008 high) is expected down the road, as long as 0.8276 support holds.
