EUR/GBP's sharp decline last week is inline with the view that rebound from 0.8067 is finished at 0.8530 and fall from there is resuming the medium term decline. Initial bias remains on the downside this week for 0.8067 and then 0.8 psychological level (100% projection of 0.9799 to 0.8399 from 0.9410 at 0.8010). On the upside, above 0.8258 minor resistance will turn intraday bias neutral and bring recovery. But upside should be limited below 0.8361 resistance and bring another fall.

In the bigger picture, whole decline from 0.9799 is viewed as a three wave correction from to the larger up trend and is still in progress for 100% projection of 0.9799 to 0.8399 from 0.9410 at 0.8010 and below. Though, such correction is expected to conclude inside 0.7693/8186 support zone and hence, focus will be on reversal signal on next fall. On the upside, break of 0.8530 resistance will suggest that EUR/GBP has possibly bottomed already and will turn outlook bullish for 0.9410 resistance for confirmation.

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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