EUR/GBP edged lower to 0.8611 last week but quickly rebounded after drawing support from 0.8631 cluster support (38.2% retracement of 0.8221 to 0.8663 at 0.8618). But upside is limited below 0.8744 resistance so far. Initial bias remains neutral this week first. On the upside, firm break of 0.8744 will argue that fall from 0.8863 has completed as a correction. Further rally should be seen back to retest 0.8863 high. On the downside, sustained break of 0.8618/31 will carry larger bearish implications and turn outlook bearish.
In the bigger picture, rise from 0.8221 medium term bottom (2024 low) is seen as a corrective move. Upside should be limited by 61.8% retracement of 0.9267 to 0.8221 at 0.8867. Sustained trading below 55 W EMA (now at 0.8626) should confirm that this corrective bounce has completed. In this case, deeper fall would be seen back to 0.8201/21 key support zone. However, decisive break of 0.8867 will suggest that EUR/GBP is already reversing whole decline from 0.9267 (2022 high). That should pave the way back to 0.9267.
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 upside is limited below 0.8744 resistance so far. Initial bias remains neutral this week first. On the upside, firm break of 0.8744 will argue that fall from 0.8863 has completed as a correction. Further rally should be seen back to retest 0.8863 high. On the downside, sustained break of 0.8618/31 will carry larger bearish implications and turn outlook bearish.){kind=link}