EUR/GBP dipped to 0.8887 initially last week but failed to sustain below 55 days EMA and recovered. As EUR/GBP now sitting in the middle of medium term range of 0.8399/9799, we'll stay neutral first. On the downside, below 0.8887 will suggest that fall from 0.9137 is still in progress for a test on 0.8601/62 support zone before completion. On the upside, break of 0.9044 resistance will argue that choppy fall from 0.9137 is finished at 0.8887 already. The corrective look will in turn indicate that rise from 0.8601 is still in progress for above 0.9137.
In the bigger picture, EUR/GBP is still bounded inside medium term converging range between 08399 and 0.9799. The question remains on whether consolidation from 0.9799 has completed with three waves to 0.8601, or it's developing into five wave triangle pattern with fall from 0.9137 as the fifth wave. In either case, in case of another fall, downside should be contained above 0.8601 support and finally bring long term up trend resumption. On the upside, break of 0.9410 resistance will indicate that the consolidation from 0.9799 has completed and long term up trend is resuming for another high above 0.9799.
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.