EUR/GBP edged lower to 0.8401 last week but recovered since then. Initial bias remains neutral this week first. On the downside, break of 0.8401 will resume larger down trend from 0.9499 to 0.8276 key long term support next. On the upside, though, break of 0.8474 will bring stronger rebound back to 55 day EAM (now at 0.8509) instead.
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 0.8656 resistance holds, towards long term support at 0.8276. However, firm break of 0.8656 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).
