EUR/GBP's rebound from 0.8221 resumed last week by taking out 0.8409 resistance and reached as high as 0.8505. A temporary top is formed there with 4 hours MACD crossed below signal line. Thus, initial bias is neutral this week for some sideway trading. Note that EUR/GBP is staying below near term falling trend line resistance (now at 0.8574). Hence, fall from 0.9083 is still in favor to extend lower. Below 0.8409 will flip bias back to the downside for 0.8221 and below. However, sustained break of the trend line will argue that whole decline from 0.9083 has likely finished and should target 0.8830 resistance next.

In the bigger picture, price actions from 0.9799 are treated as a consolidation pattern in the long term up trend. Fall from 0.9083 is viewed as the third leg and could extend to 61.8% projection of 0.9799 to 0.8067 from 0.9083 at 0.8013 (which is close to 0.8 psychological level). We'd expect strong support inside 0.7693/8186 support zone, possibly near to 61.8% retracement of 0.6535 to 0.9799 at 0.7782 to contain downside to finish off the consolidation. On the upside, though, break of 0.9083 resistance is needed to indicate completion of the whole pattern from 0.9799. Otherwise, there will also be risk of another fall even in case of rebound.

In the long term picture, long term up trend from 2000 low of 0.5680 shouldn't be over yet and the choppy fall from 2008 high of 0.9799 should be a correction only. We'd expect such correction to be contained by 0.7963/0.8186 support zone and bring up trend resumption. Rise from 0.5680 is still expected to extend beyond 0.9799 high eventually.