EUR/GBP gyrated lower last week and broke 55 D EMA (now at 0.8347). But subsequent strong recovery mixed up the near term outlook. Initial bias is turned neutral this week first. On the downside, below 08314 will bring deeper fall back to 0.8239 support. However, firm break of 0.8373 minor resistance will argue that fall from 0.8448 is merely a correction and has completed. Retest of 0.8448 should be seen next.
In the bigger picture, EUR/GBP is still bounded inside medium term falling channel. While rebound from 0.8221 might extend higher, it could still develop into a corrective pattern. Overall outlook will be neutral at best and down trend from 0.9267 (2022 high) could extend, at least until decisive break of channel resistance (now at 0.8495).
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.
. But subsequent strong recovery mixed up the near term outlook. Initial bias is turned neutral this week first. On the downside, below 08314 will bring deeper fall back to 0.8239 support. However, firm break of 0.8373 minor resistance will argue that fall from 0.8448 is merely a correction and has completed. Retest of 0.8448 should be seen next.){kind=link}