EUR/GBP’s extended fall last week indicates short term topping at 0.8764, on bearish divergence condition in 4H MACD. Initial bias is now on the downside this week for 0.8648 support. Decisive break there will argue that whole rise from 0.8491 has completed and turn near term outlook bearish. Nevertheless, break of 0.8724 minor resistance will retain near term bullishness and bring retest of 0.8764.
In the bigger picture, down trend from 0.9267 (2022 high) should have completed completed with three down to to 0.8491. Rise from 0.8491 is seen as another leg inside that pattern from 0.9499 (2020 high). Further rally should be seen to 0.8977 resistance and above. However, firm break of 0.8648 support will dampen this view, and open up the case for another medium term decline through 0.8941.
In the long term picture, long term range pattern is extending. But rise from 0.6935 (2015 low) is expected to resume at a later stage, to 0.9799 (2009 high).
