EUR/GBP edged higher to 0.8472 last week but retreated notably since then. Initial bias stays neutral this week first. On the upside, break of 0.8472 will resume the rally from 0.8221 to 0.8624 key cluster resistance zone next. However, sustained break of 0.8403 will turn bias back to the downside for 55 D EMA (now at 0.8350).
In the bigger picture, a medium term bottom should be in place at 0.8221, just ahead of 0.8201 key support (2022 low). Sustained trading above 55 W EMA (now at 0.8442) will pave the way to 0.8624 cluster zone (38.2% retracement of 0.9267 to 0.8221 at 0.8621), even just as a correction to the down trend from 0.9267 (2022 high). But still, medium term outlook will be neutral at best as long as 0.8621/4 holds.
In the long term picture, price action from 0.9499 (2020 high) is seen as part of the long term range pattern from 0.9799 (2008 high). Range trading should continue between 0.8201 and 0.9499, until there is clear signal of imminent breakout.
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