EUR/GBP’s decline continued last week and outlook is unchanged. Initial bias remains on the downside this week for 61.8% retracement of 0.8221 to 0.8863 at 0.8466. As the cross is losing downside momentum as seen in 4H MACD, some support could be seen there to bring rebound. On the upside, above 0.8539 resistance will turn intraday bias neutral again. But recovery should be limited by 0.8610 support turned resistance to bring another fall.
In the bigger picture, current development suggests that rise from 0.8221 (2024 low) has completed at 0.8863, just ahead of 38.2% retracement of 0.8221 (2024 low) to 0.8863 (2025 high) at 0.8618. Deeper fall would be seen back to 0.8201 (2022 low). For now, outlook will be neutral at best as long as 0.8863 hold.
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.
