EUR/GBP dropped further to as low as 0.8601 last week but recovered since then. With 0.8686 minor resistance taken out, an intraday low is in place and initial bias is neutral this week. Some recovery might be seen to 4 hours 55 EMA (now at 0.8719) but after all, upside should be limited by 0.8792 resistance and bring fall resumption. Below 0.8601 will target 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 0.8833 support turned resistance 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. On the upside, though, above 0.8833 will argue that fall from 0.9410 might be over and price actions from 0.9799 are developing into sideway consolidation, probably in form of triangle, rather than a deep correction.
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.