EUR/GBP Weekly Outlook

EUR/GBP’s fall from 0.8977 resumed last week but recovered after hitting 0.8782. Initial bias is neutral this week first. Another decline is mildly in favor as long as 0.8927 resistance holds. Below 0.8782 will target 0.8720 support. On the upside, break of 0.8927 will revive near term bullishness and bring retest of 0.8977 high.

In the bigger picture, focus is back on 55 day EMA (now at 0.8807). Sustained trading below there will argue that fall from 0.9267 is in progress. Such decline is seen as a leg inside long term range pattern from 0.9499 (2020 high). Break of 0.8545 will pave the way back to 0.8201 (2022 low). On the other hand, strong rebound from current level will extend the rise from 0.8545 through 0.8977 at a later stage.

In the long term picture, long term range pattern is extending. But rise from 0.6935 (2015 low) is expected to extend at a later stage, to 0.9799 (2009 high).

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