EUR/GBP’s rebound from 0.8448 extended sharply higher last week. The development suggests that fall from 0.8668 has completed already. Initial bias stays on the upside this week for retesting 0.8668 first. Firm break there will be a strong sign of near term bullish reversal at least. On the downside, break of 0.8534 resistance turned support will mix up the near term outlook again and turn intraday bias neutral first.
In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8668 resistance holds, towards long term support at 0.8276. However, firm break of 0.8668 resistance would argue that a medium term bottom was already formed. Stronger rise would be seen to 0.8861 support turned resistance to confirm completion of the corrective pattern.
In the long term picture, outlook will stay bullish as long as 0.8276 support holds. Break of 0.9499 is in favor at a later stage, to resume the up trend from 0.6935 (2015 low).
