EUR/GBP dropped notably last week, but overall it’s staying in range of 0.8861/9291. Initial bias stays neutral this week first. Further rally is mildly in favor as long as 0.8861 support holds. On the upside, decisive break of 0.9291 will resume whole choppy rise from 0.8670 to retest 0.9499 high.
In the bigger picture, at this point, we’re seeing the price actions from 0.9499 as developing into a corrective pattern. That is, up trend from 0.6935 (2015 low) would resume at a later stage. This will remain the favored case as long as 0.8276 support holds. Decisive break of 0.9499 will target 0.9799 (2008 high).
In the long term picture, rise from 0.6935 (2015 low) is still in progress. It could be resuming long term up trend from 0.5680 (2000 low). Break of 0.9799 (2008 high) is expected down the road, as long as 0.8276 support holds.
