EUR/GBP’s fall from 0.8740 continued last. Initial bias stays on the downside this week with focus on 0.8610 support. Firm break there will carry larger bearish implications and pave the way to 0.8466 fibonacci level next. On the upside, above 0.8652 support turned resistance will turn intraday bias neutral again first.
In the bigger picture, focus is back on 38.2% retracement of 0.8821 to 0.8863 at 0.8618. Sustained break there will confirm that whole rise from 0.8221 has completed at 0.8863. Deeper decline should then be seen to 61.8% retracement at 0.8466 at least. For now, risk will stay mildly on the downside as long as 55 D EMA (now at 0.8682) holds, in case of recovery.
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.
