EUR/GBP dripped further to as low as 0.8180 last week but drew support from mentioned 0.8167/86 support zone and recovered. Considering bullish convergence condition in 4 hours MACD, a short term bottom might be in place. Initial bias remains neutral this week. Break of 0.8281 will flip back back to the upside. Further break of 0.8381 will confirm bottoming and will turn outlook bullish for 0.8806 resistance. However, note that sustained trading below 0.8167/86 support zone will invalidate out view and bring deeper fall to 0.8 psychological level instead.
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 to completion. Break of 0.8381 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.