EUR/GBP recovered further to 0.8381 last week but turned sideway after touching 0.8378 minor resistance. Initial bias remains neutral this week and some more sideway trading might be seen. But another rise remains in favor as long as 0.8261 support holds. Decisive break of 0.8378 will affirm our view that a short term bottom is at least in place at 0.8209 and bring stronger rise towards 0.8546 resistance and then 0.8806. On the downside, below 0.8261 will dampen this view and will probably bring another low below 0.8209. Nevertheless, even in such case, we'd expect strong support from 0.8186 cluster support to conclude recent decline and bring reversal.
In the bigger picture, price actions from 0.9799 are treated as consolidations in the larger up trend in form of three waves and should be near term completion. Break of 0.8601 support turned resistance will be the first sign of medium term reversal and will bring stronger rally towards 0.9410 resistance. Break there will argue that whole long term up trend is resuming. However, note that decisive break of 0.8186 cluster support (50% retracement of 0.6535 to 0.9799 at 0.8167) will indicate that deeper decline would be seen towards 0.7693 support instead.
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.