EUR/GBP edged higher again to 0.8795 but lacked follow through momentum afterwards and dropped sharply towards the end of the week. With 0.8884 resistance intact, there is no change in the over fall bearish outlook. Initial focus of the week will be on 0.8670 minor support. Break will indicate completion of the rebound from 0.8529 and should flip bias back to the downside for retesting this support first. On the upside, above 0.8795 will bring another rise. But again, in such, case, we'll look for reversal signal as EUR/GBP approaches 0.8884.

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 from 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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