EUR/GBP’s decline from 0.8737 continued last week despite interim recovery. As noted before, rise from 0.8221 should have completed as a correction to 0.8737. Initial bias is on the downside this week for 0.8221/8239 support zone. On the upside, above 0.8439 minor resistance will turn intraday bias neutral again first.
In the bigger picture, current development suggests that price actions from 0.8221 medium term bottom are merely forming a corrective pattern. However, there is no clear momentum to break through 0.8201 key support (2022 low) yet. Hence, range trading is expected between 0.8221/8737 for now.
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.
