EUR/GBP’s rally from 0.8221 continued last week and broke 0.8624 cluster resistance decisively. Initial bias remains on the upside this week. Next target is 261.8% projection of 0.8239 to 0.8448 from 0.8314 at 0.8861. On the downside, break of 0.8518 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.
In the bigger picture, firm break of 0.8624 cluster resistance (38.2% retracement of 0.9267 to 0.8221 at 0.8621) should confirm the case of bullish trend reversal. That is, down trend from 0.9267 (2022 high) has completed at 0.8221, just ahead of 0.9201 key support (2024 low). Further rise should be seen to 61.8% retracement at 0.8867 next. This will now remain the favored case as long as 0.8472 resistance turned support holds.
In the long term picture, price action from 0.9499 (2020 high) is seen as part of the long term range pattern from 0.9799 (2008 high). Range trading should continue between 0.8201 and 0.9499, until there is clear signal of imminent breakout.
