EUR/GBP Weekly Outlook

EUR/GBP rebounded strongly after initial dip to 0.8614 last week. Corrective pull back from 0.8704 could have completed, after drawing support from 55 D EMA (now at 0.8621). The development revives near term bullish ness that rise from 0.8491 is still in progress. Initial bias is back on the upside for retesting 0.8700/4 resistance zone. Decisive break there will carry larger bullish implications. Nevertheless, break of 0.8614 will turn bias to the downside to resume the fall from 0.8704 instead.

In the bigger picture, the down trend from 0.9267 (2022 high) is seen as part of the long term range pattern from 0.9499 (2020 high). Decisive break of 0.8700 resistance will argue that this decline has completed with three waves down to 0.8491. Rise from 0.8491 could then be another leg inside the pattern and targets 0.8977 and above. However, rejection by 0.8700 will keep the down trend alive for another fall through 0.8491 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 resume at a later stage, to 0.9799 (2009 high).

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