EUR/GBP continued to stay in converging range last week and there is no change in the outlook. Another fall is still expected as long as 0.9053 resistance holds. Below 0.8921 minor support will flip intraday bias back to the downside for 0.8833/55 support zone first. Break there will confirm that whole decline from 0.9410 has resumed for 61.8% projection of 0.9410 to 0.8833 from 0.9153 at 0.8786 next. On the upside, however, break of 0.9053 resistance will argue that EUR/GBP might have bottomed out at 0.8833 already and stronger rally should then be seen to 0.9153 resistance first.

In the bigger picture, at this point, we're still favoring the case that medium term correction from 0.9799 has completed with three waves down to 0.8399 already. Rise from 0.8399 is possibly resuming the long term up trend. Hence, fall from 0.9410 is viewed as a correction only and should be contained by 0.8704 support. Break of 0.9053 will suggest that correction from 0.9410 has completed and rise from 0.8399 is resuming for a test on 0.9799 high first and then 61.8% projection of 0.6535 to 0.9799 from 0.8399 at 1.0416.

However, break of 0.8704 support will argue that firstly, rise from 0.8399 has completed at 0.9410 already. Secondly, this will indicate that fall from 0.9410 is likely the third leg of the correction pattern that started at 0.9799 and could extend beyond 0.8399 support before the whole correction concludes.

In the long term picture, long term up trend in EUR/GBP might be resuming as correction from 0.9799 has completed at 0.8399. Decisive break of 0.9799 high will confirm this bullish view and target 261.8% projection of 0.5680 to 0.7258 from 0.6535 at 1.0666. Break of 0.8704 will delay the bullish view but we'd still expect the long term up trend to resume sooner or later as long as 0.8186 support holds.

EUR/GBP

EUR/GBP

EUR/GBP

EUR/GBP