EUR/GBP edged higher to 0.8612 last week but dropped sharply since then. The development argues that rebound from 0.8448 has completed already. With 0.8668 resistance intact, larger fall from 0.9499 is probably still in progress. Initial bias stays mildly on the downside for retesting 0.8448 low first. On the upside, though, break of 0.8612 will resume the rise from 0.8448 to 0.8668 resistance.
In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8668 resistance holds, towards long term support at 0.8276. However, firm break of 0.8668 resistance 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).
