EUR/GBP edged higher to 0.8573 last week but retreated since then. Initial bias stays neutral this week for more consolidations. Further rally is expected as long as 0.8492 support holds. Above 0.8573 will target 61.8% retracement of 0.8737 to 0.8354 at 0.8591. Sustained break there will pave the way to 0.8737 resistance. However, firm break of 0.8492 will argue that rebound from 0.8354 has completed, and turn bias back to the downside.
In the bigger picture, price actions from 0.8221 medium term bottom are seen as forming a corrective pattern to the down trend from 0.9267 (2022 high). Nevertheless, there is no clear momentum to break through 0.8201 key support (2022 low) yet. Hence, range trading is expected between 0.8221/8737 for now.
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.
