EUR/GBP extended the consolidations from 0.8399 last week and outlook is unchanged. Initial bias remains neutral this week first. While stronger recovery might be seen, outlook will stay bearish as long as 0.8466 resistance holds. Break of 0.8399 will resume the fall from 0.8624 and target 0.8382 support. Firm break there will resume larger down trend.
In the bigger picture, as long as 0.8624 resistance holds, down trend from 0.9267 is expected to continue. Firm break of 0.8382 will target 0.8201 (2022 low). However, decisive break of 0.8624 will indicate that such down trend has completed, and turn outlook bullish for 0.8764 resistance next.
In the long term picture, price action from 0.9499 (2020 high) is seen as part of the long term range pattern from 0.9799 (2008 high). Range trading should continue between 0.8201 and 0.9499, until there is clear signal of imminent breakout.
