EUR/GBP dropped to as low as 0.8469 last week and there is no sign of bottoming yet. Initial bias remains on the downside this week with focus on 0.8470 low. Decisive break there will resume larger fall from 0.9499, towards next key support at 0.8276. On the upside, break of 0.8556 will indicate short term bottoming and turn bias back to the upside for strong rebound.
In the bigger picture, price actions from 0.9499 are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8718 resistance holds. Firm break of 0.8470 will target long term support at 0.8276. However, firm break of 0.8718 would argue that a medium term bottom was already formed. Stronger rise would be seen to 0.8861 support turned resistance to confirm completion of the corrective pattern.
In the long term picture, outlook will stay bullish as long as 0.8276 support holds. Break of 0.9499 is in favor at a later stage, to resume the up trend from 0.6935 (2015 low).
