Range trading continued in EUR/GBP last week and outlook is unchanged. Initial bias stays neutral this week first. Rebound from 0.8453 is seen as a corrective bounce. In case of another rise, strong resistance should be seen from 0.8610 support turned resistance to limit upside. On the downside, break of 0.8530 support will turn bias back to the downside for retesting 0.8453. However, firm break of 0.8610 will bring stronger rally to falling channel resistance (now at 0.8654).
In the bigger picture, rise from 0.8221 (2024 low) should have completed at 0.8863, just ahead of 38.2% retracement of 0.9267 (2025 high) to 0.8221 at 0.8867. Deeper fall would be seen back to 0.8221. For now, outlook will be neutral at best as long as 0.8610 support turned resistance 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.
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