EUR/GBP's rise from 0.8067 resumed after almost a week of consolidation and reached as high as 0.8460. The strong break of 55 days EMA further affirm our view that EUR/GBP has bottomed out at 0.8067 already. Initial bias will remain on the upside this week and stronger rally should be seen to 0.8601 support turned resistance first. On the downside, break of 0.8316 support is needed to indicate that rebound from 0.8067 is finished. Otherwise, we'll stay bullish in the cross.
In the bigger picture, whole decline from 0.9799 is viewed as a three wave correction from to the larger up trend. Such correction might have completed at 8067 already, indicate mentioned 0.7693/8186 support zone. Focus remains on 0.8601 support turned resistance. Decisive break there will further affirm the case that long term up trend in 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.