EUR/GBP's rally attempt was limited at 0.8884 last week, below 0.8886 resistance and reversed. The development indicates that recent price actions are merely sideway consolidation to fall from 0.9083. It's possible that such consolidation is finished at 0.8884 already. In any case, initial bias will remain mildly on the downside this week for 0.8642/53 support zone first. Decisive break there will confirm resumption of fall from 0.9083. Further break of 0.8610 support will target 100% projection of 0.9083 to 0.8642 from 0.8884 at 0.8443 next. On the upside, above 0.8800 minor resistance will turn bias neutral and bring consolidations. But we'll stay cautiously bearish as long as 0.8884 resistance holds.

In the bigger picture, price actions from 0.9799 (2008) should be unfolding as a consolidation pattern in the long term up trend. The first leg is completed with three waves down to 0.8067. Current development argues that the second leg is already completed with three waves up to 0.9083. Break of 0.8610 support will affirm this case and should target 0.8067 and below. Break of 0.9083, though, will bring another rise to extend the choppy rally from 0.8067. But even in that case, we'd expect strong resistance ahead of 0.9410 medium term resistance to bring reversal and start the third leg.

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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