EUR/GBP stayed in consolidation above 0.8737 last week and outlook is unchanged. Initial bias remains neutral this week first. But outlook will remain bearish as long as 0.8838 minor resistance holds. Break of 0.8737 will target 0.8670 support. Break there will target 161.8% projection of 0.9291 to 0.8861 from 0.9229 at 0.8533.
In the bigger picture, 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.
