EUR/GBP’s rise from 0.8221 resumed last week and hit as high as 0.8817. But with a temporary top formed, initial bias remains neutral this week for consolidations. Further rise is expected as long as 0.8750 resistance turned above holds. Above 0.8817 will target 0.8867 fibonacci level. Firm break there will carry larger bullish implications. Nevertheless, sustained break of 0.8750 will turn bias back to the downside for 0.8654 support instead.
In the bigger picture, rise from 0.8221 medium term bottom is still seen as a corrective move. Upside should be limited by 61.8% retracement of 0.9267 to 0.8221 at 0.8867. Firm break of 0.8654 support will be the first sign that this corrective bounce has completed. However, decisive break of 0.8867 will suggest that EUR/GBP is already reversing whole decline from 0.9267 (2022 high).
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.
