EUR/GBP's break of 0.8381 resistance last week suggests that fall from 0.9137 is finished at 0.8067 on bullish convergence condition in daily MACD. Initial bias will remain on the upside this week for further rise to 55 days EMA (now at 8419). Sustained trading above there will further affirm that trend in EUR/GBP has reversed and will target 0.8601 key resistance next. Meanwhile, in case of retreat, we'll stay cautiously bullish as long as 0.8217 support holds and expect further rise.

In the bigger picture, whole decline from 0.9799 is viewed as a three wave correction from to the larger up trend. The break of 0.8381 resistance last week serves as the first signal that the third wave has finished at 0.8067 already, so has the whole correction. Focus will now turn to 0.8601 support turned resistance. Decisive break there will further affirm the case that long term up trend is EUR/GBP is resuming and will target 0.9410 resistance for confirmation. On the downside, in case of another fall, we'd continue to focus on reversal signal inside 0.7693/8186 support zone

In the long term picture, 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 extend beyond 0.9799 high eventually.

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