EUR/GBP's fall extended to as low as 0.8650 last week before recovering. From a short term angle, some more recovery might be seen initially this week. But upside should be limited below 0.8855 support turned resistance and bring fall resumption. Below 0.8686 minor support will flip intraday bias back to the downside and bring fall resumption to 100% projection of 0.9410 to 0.8833 from 0.9153 at 0.8576 next.
In the bigger picture, current development indicates that rebound from 0.8399 has completed at 0.9410 already and fall from there could be the third leg of the whole correction pattern that started at 0.9799. Outlook will remain bearish as long as 0.9153 resistance holds. Correction from 0.9799 could extend further to 0.7693/0.8186 support zone, with 100% projection of 0.9799 to 0.8399 from 0.9410 at 0.8010 in between.
In the long term picture, current development suggests correction from 0.9799 is still in progress and the long term up trend from 2000 low of 0.5680 is not ready to resume yet. Nevertheless, correction from 0.9799 is expected to be contained by 0.7963/0.8186 support zone to conclude the correction and bring up trend resumption. Rise from 0.5680 is still expected to continue to 261.8% projection of 0.5680 to 0.7258 from 0.6535 at 1.0666 eventually.