EUR/GBP's corrective rebound from 0.8284 resumed last week by breaking 0.8497 and reached as high as 0.8527 so far. Initial bias remains on the upside and further rise should be seen to 100% projection at 0.8544 and possibly above. But after all, price actions from 0.8284 are viewed as correction to fall from 0.8646 only. Hence, we'd expect strong resistance below 0.8646 to limit upside to conclude the correction. Whole decline from 0.8940 should resume sooner or later. On the downside, below 0.8412 minor support will flip bias back to the downside 0.8284 and below.

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.

/

/

/

/