EUR/GBP’s edged lower to 0.8552 last week turned sideway since then. Initial bias remains neutral this week for consolidations first. Upside of recovery should be limited below 0.8648 support turned resistance to bring another decline. Below 0.8552 will target 0.8491 low first. Firm break there will resume larger down trend.
In the bigger picture, current development suggests that down trend from 0.9267 (2022 high) is still in progress. This decline is seen as the third leg of the pattern from 0.9499 (2020 high). Break of 0.8201 will target 100% projection of 0.9499 to 0.8201 from 0.9267 at 0.7969. In any case, outlook will stay bearish as long as 0.8764 resistance holds.
In the long term picture, long term range pattern from 0.9799 (2008 high) is extending, and is set to continue until further development.
