Despite initial dip to 0.8224, EUR/GBP staged a strong rebound ahead of 0.8201 key support. Considering bullish convergence condition in 4H MACD, a short term bottom could at least be formed. Initial bias stays on the upside this week for 38.2% retracement of 0.8624 to 0.8224 at 0.8377. Firm break there will target 61.8% retracement at 0.8471, even as a corrective move. On the downside, break of 0.8271 support will bring retest of 0.8224 low instead.
In the bigger picture, focus is now on whether 0.8201 key support (2022 low) is strong enough to complete the whole down trend from 0.9267 (2022 high). In any case, medium term outlook will be neutral at best until decisive break of 0.8624 key resistance. Otherwise, risk will stay on the downside even in case of strong rebound.
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.
