EUR/GBP's corrective recovery from 0.7755 short term bottom continued last week. Such recovery could extend higher in near term, but still, upside is expected to be limited by 0.7949 resistance and bring fall resumption eventually. Below 0.7823 minor support will flip bias back to the downside for retesting 0.7755 low first. However, break of 0.7949 will be an early sign of reversal and will turn focus back to 0.8156 resistance instead.
In the bigger picture, price actions from 0.9799 are treated as a long term consolidation pattern with fall from 0.9083 as the third leg. Strong support is expected inside 0.7693/8186 support zone to conclude the consolidation. Hence, we'll continue to focus on reversal signal during this stage of the decline. Break of 0.8156 resistance will indicate medium term reversal. However, sustained break of 0.7693 will invalidate this view and could then bring deeper fall to 100% projection of 0.9799 to 0.8067 from 0.9083 at 0.7351 or even further to 0.6535/7258 support zone.
In the long term picture, the long term up trend now looks very vulnerable even though EUR/GBP is still holding on to 0.7693 key support and 61.8% retracement of 0.5680 to 0.9799 at 0.7740. Sustained break of 0.7693 will bring deeper fall back to 0.6535/7258 support zone.
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