After edging lower to 0.8529, EUR/GBP staged a strong rebound last week to as high as 0.8790 before losing some upside moment. With 4 hours MACD crossed below signal line, a temporary top should be formed at 0.8790 and initial bias is neutral this week for some sideway trading. A break of 0.8686 minor support will argue that recovery from 0.8529 is finished and will flip bias back to the downside for retesting this support. On the upside, above 0.8790 will bring another rise but in that case, we'll start to look for reversal signal as EUR/GBP approaches 0.8884 key near term resistance.

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. Second leg should also be finished at 0.9083. Fall fro 0.9083 is treated as the third leg and should now target 0.8067 first and possibly further to 61.8% projection of 0.9799 to 0.8067 from 0.9083 at 0.8013 (which is closes to 0.8 psychological level). Nevertheless, we'd expect strong support from 0.7693/8186 support zone to contain downside to finish off the consolidation. On the upside, break of 0.8884 resistance is needed to invalidate this view or we'll stay bearish now.

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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