EUR/GBP spiked lower to 0.8861 last week but quickly drew support from 0.8866 support and recovered. Initial bias is neutral this week first. Further fall is mildly in favor with 0.9068 resistance intact. Sustained break of 0.8866 will argue that rebound from 0.8670 has completed, and pattern from 0.9499 has started the third leg. Intraday bias will be back on the downside for 0.8670 and possibly below. Nevertheless, firm break of 0.9068 will turn bias back to the upside for 0.9291 resistance.
In the bigger picture, at this point, we’re seeing the price actions from 0.9499 as developing into a corrective pattern. That is, up trend from 0.6935 (2015 low) would resume at a later stage. This will remain the favored case as long as 0.8276 support holds. Decisive break of 0.9499 will target 0.9799 (2008 high).
In the long term picture, rise from 0.6935 (2015 low) is still in progress. It could be resuming long term up trend from 0.5680 (2000 low). Break of 0.9799 (2008 high) is expected down the road, as long as 0.8276 support holds.
