EUR/GBP’s solid break of 0.8744 resistance last week suggests that corrective fall from 0.8863 has completed at 0.8611. More importantly, up trend from 0.8221 is not completed. Initial bias stays on the upside this week for retesting 0.8863 first. For now, further rally is expected as long as 0.8705 support holds, in case of retreat.
In the bigger picture, current development suggests that rise form 0.8221 medium term bottom is still in progress. Decisive break of 61.8% retracement of 0.9267 to 0.8221 at 0.8867 should confirm that it’s reversing whole down trend from 0.9267. 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.
