EUR/GBP's rebound from 0.8284 extended to as high as 0.8497 before forming a temporary top there and retreated. Initial bias is neutral this week and we'd expect some sideway trading first. On the upside, above 0.8497 will bring another rise but after all, we'll need to have 0.8646 resistance taken out decisive to confirm that fall from 0.8940 is finished. Otherwise, we'd stay bearish and expect another fall after the current rebound. on the downside, break of 0.8284 and 61.8% projection of 0.8940 to 0.8333 from 0.8646 at 0.8271 will target 100% projection at 0.8039, which is very close to 0.8 psychological level.
In the bigger picture, whole decline from 2008 high of 0.9799 should still be in progress. Such choppy fall is treated as a correction to the larger up trend and would likely target a new low below 0.8067. In that case, we'll be looking at reversal signal between 0.7693/8186 as we'd expect such correction to conclude there. On the upside, break of 0.8646 resistance however, will indicate that fall from 0.8940 is finished with three waves down to 0.8646. This, will in turn indicate that rise from 0.8067 is still in progress for another high above 0.8940.
In the long term picture, long term up trend from 2000 low of 0.5680 shouldn't be over yet and the choppy fall from 2008 high of 0.9799 should be a correction only. We'd expect such correction to be contained by 0.7963/0.8186 support zone and bring up trend resumption. Rise from 0.5680 is still expected to extend beyond 0.9799 high eventually.