EUR/GBP’s rise from 0.8239 resumed by breaking through 0.8448 and 0.8472 resistance. There is no sign of topping yet. Initial bias stays on the upside this week. Firm break of 100% projection of 0.8239 to 0.8448 from 0.8314 at 0.8523 will pave the way to 0.8624 cluster resistance next. On the downside, below 0.8447 minor support will turn intraday bias neutral first.
In the bigger picture, the break of medium term channel resistance is a bullish signal. Down trend from 0.9267 (2022 high) could have completed at 0.8221, just ahead of 0.9201 key support (2022 low). Firm break of 0.8624 cluster resistance (38.2% retracement of 0.9267 to 0.8221 at 0.8621) will confirm this bullish case and target 61.8% retracement at 0.8867 next. Nevertheless, rejection by 0.8624 will keep medium term outlook neutral at best.
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.
