EUR/GBP held above 0.8657 support last week and rebounded strongly towards the end. The development dampened the case that recovery from 0.8601 has completed at 0.8841 already and mixes up the outlook. We'll stay neutral for the moment. On the upside, sustained trading above 0.8841 resistance will favor the case that whole decline from 0.9410 has completed at 0.8601 already. In such case, stronger rally should be seen to 0.9153 resistance and above. On the downside, break of 0.8657 support will in turn indicates that fall from 0.9410 is still in progress and should be resuming for another low below 0.8601.
In the bigger picture, price actions from 0.9799 are treated as consolidation in the long term rally, with first leg completed at 0.8399, second leg at 0.9410. Fall from 0.9410 is treated as the third leg of the consolidation and might still be in progress for 0.8399 low and possibly 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, break of 0.8841 will suggest that EUR/GBP is developing into sideway triangle consolidation instead of a deep correction. After all, note that we'd expect long term up trend to resume for another high above 0.9799 eventually after completing the current medium term consolidation.
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 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.