EUR/GBP dropped further to as low as 0.8704 last week but lost some downside momentum since then. With 4 hours MACD staying above signal line, initial bias is neutral this week. While another fall cannot be ruled out, note that fall from 0.9132 is treated as part of the consolidation pattern from 0.9799. Hence, downside will likely be contained by 0.8601/62 support zone to conclude the consolidation finally. On the upside, break of 0.8887 support turned resistance will indicate that such fall has completed and will bring stronger rally to retest 0.9132 next.
In the bigger picture, EUR/GBP is still bounded inside medium term converging range between 0.8399 and 0.9799. Current development suggest that fall from 0.9132 is the fifth leg in a triangle pattern. Hence, consolidation from 0.9799 could be near to completion. Break of 0.9137 will argue that long term up trend is resuming and should target another high above 0.9799. Though, firm break of 0.8601 will indicate that price action from 0.9799 is developing into a deep correction with another low below -0.8399 before completion.
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.