EUR/GBP’s near term outlook is mixed up by the extended fall to 0.8290 and the short-lived recovery. Initial bias is turned neutral this week first. On the upside, above 0.8376 minor resistance will bring stronger rally towards 08472. However, on the downside, break of 0.8290 will resume the fall from 08472 to retest 0.8221 low.
In the bigger picture, rebound from 0.8221 medium term bottom could extend higher through 55 W EMA (now at 0.8439). However, medium term outlook will be neutral at best as long as 0.8624 cluster resistance zone (38.2% retracement of 0.9267 to 0.8221 at 0.8621) holds. Another decline through 0.8221 would remain mildly in favor.
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.
