Despite dipping to 0.8460, EUR/GBP staged a strong rebound then and reached as high as 0.8606. The break of 0.8592 resistance indicates that rise from 0.8354 has resumed. Further rally is now in favor towards 0.8671 resistance. After all, note that recent price actions from 0.8333 are possibly in form of expanding triangle. Price actions would likely remain choppy before a breakout. Also, we'd expect strong resistance near to 0.8671 to limit upside. On the downside, break of 0.8460 will suggest that rebound from 0.8354 has completed and flip bias back to the downside for 0.8354 and below.

In the bigger picture, rebound from 0.8067 has finished with three waves up to 0.8940 after hitting medium term trend line resistance. The development indicates that whole fall from 2008 high of 0.9799, which is treated a correction to the larger up trend, is not finished yet. Another low below 0.8067 could be seen ahead. Nevertheless, we'd continue to look for reversal signal inside 0.7693/8186 support zone. Meanwhile, break of 0.8940 will revive the case that correction from 0.9799 is already completed and will turn outlook bullish.

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.

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