EUR/GBP’s strong rebound last week suggests that correction from 0.8752 has completed at 0.8648, after hitting 38.2% retracement of 0.8491 to 0.8752 at 0.8652. Initial focus is on 0.8752 resistance this week. Decisive break there will resume larger up trend and target 0.8874 resistance next. On the downside, below 0.8715 minor support will extend the corrective pattern with another falling leg before completion.
In the bigger picture, current development suggests that whole down trend from 0.9267 (2022 high) has completed with three down to to 0.8491. Rise from 0.8491 is seen as another leg inside that pattern from 0.9499 (2020 high). Further rally should be seen to 0.8977 resistance and above. This will remain the favored case as long as 0.8614 support holds.
In the long term picture, long term range pattern is extending. But rise from 0.6935 (2015 low) is expected to resume at a later stage, to 0.9799 (2009 high).
