EUR/GBP’s down trend from 0.9499 resumed by breaking through 0.8401 last week. But as a temporary low was formed at 0.8381, initial bias is neutral this week first. In case of another recovery, upside should be limited well below 0.8593 resistance. break of 0.8381 will turn bias back to the downside and target 0.8276 key long term support.
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 0.8593 resistance holds, towards long term support at 0.8276. We’d look for bottoming signal around there to bring reversal. However, sustained break of 0.8276 will but a sign of long term bearish reversal.
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). However, sustained break of 0.8276 will indicate long term trend reversal, and target 61.8% retracement of 0.6935 to 0.9499 at 0.7917, and possibly below.