EUR/GBP’s decline last week suggests that corrective rebound form 0.8670 has completed with three waves up to 0.9175. That came after missing 61.8% retracement of 0.9499 to 0.8670 at 0.9182. Initial bias stays on the downside this week for 0.8864 support first. Break will confirm this case and target a test on 0.8670 low. On the upside, though, break of 0.9067 will turn bias back to the upside for retesting 0.9175 instead.
In the bigger picture, while the pull back from 0.9499 was deep, there is no sign of trend reversal yet. The up trend from 0.6935 (2015 low) should resume at a later stage to 61.8% projection of 0.6935 to 0.9263 from 0.8276 at 0.9715. This will remain the favored case as long as 0.8276 support holds.
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). Decisive break of 0.9799 will target 100% projection of 0.5680 to 0.9799 from 0.6935 at 1.1054.
